I live in WA, and it is hard to get 20% on properties I'm interested in. Currently, I own a home and I was wondering if there is any other solution, I could purchase an investment property, second home, or similar with 10%. I had people suggesting cash out or HELOC, but I really don't like to risk the peace of mind I have with the home I own with refinancing it again.
Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
4y
If you were to buy a vacation home some where, you could rent it out as an STR part of the year, but you cannot use it solely as an investment property. Vacation home loans can be as low as 10%.
Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
4y
If you were to buy a vacation home some where, you could rent it out as an STR part of the year, but you cannot use it solely as an investment property. Vacation home loans can be as low as 10%.
Rental Property Investor · Fairmont, MN · Member since 2019 · 184 posts · 123 votes
4y
@Anna Bee bring a money partner in to provide the extra 10% (or more) to the table in exchange for equity and/or cash flow. Another great option is seller financing, ask the seller to finance 90% of the purchase price, then you can only need to come up with 10% + rehab funds. Another seller finance way is to ask the seller to hold a mortgage in second position. Bank gives you 80%, seller in second position at 10% (or more), and you come up with the rest. Make sure your lender is comfortable with this type of structure before asking the seller, generally smaller community lenders are okay with the seller having a second mortgage.
Thank you @Lucas Miles! That seems something I would love to look into. Any tips on where or how to start looking for sellers interested in seller financing?
Rental Property Investor · Fairmont, MN · Member since 2019 · 184 posts · 123 votes
4y
@Anna Bee the key is definitely to find motivated sellers. Properties that have significant deferred maintenance, poor management, high vacancy, low rents, etc. How I started was driving for dollars, driving around my local neighborhood and looks for properties that looked to be in poor condition, wrote down the address then researched to find the sellers phone number.