Phoenix, AZ · Member since 2014 · 6 posts · 1 vote
Hello,
Is is worth it to buy and hold if I don't have money for a down payment and can manage to get a 0 down duplex or triplex and the deal is right? Is it even possible to get those types of homes 0 down?
If not, what is a good time to buy in? Is it worth the wait for a couple years to save for a 20% down payment to obtain a conventional loan?
I am very ambitious to jump into the industry and my rental lease is up in 2 months. Should I buy a single family for myself while I save so I can rent it out later or renew a lease and save more capital?
SFR Investor · Los Angeles, CA · Member since 2012 · 48 posts · 7 votes
12y
@Eric Anderson getting a 3.5% down FHA loan along with a 2/3/4 plex is a great idea. The tenants will help pay part of your mortgage or hopefully all of it and some.
All big banks no longer have programs where you can get a loan with 0% down, at least with conventional loans.
SFR Investor · Los Angeles, CA · Member since 2012 · 48 posts · 7 votes
12y
@Eric Anderson getting a 3.5% down FHA loan along with a 2/3/4 plex is a great idea. The tenants will help pay part of your mortgage or hopefully all of it and some.
All big banks no longer have programs where you can get a loan with 0% down, at least with conventional loans.
Cherry Hill, NJ · Member since 2014 · 23 posts · 2 votes
12y
If coming up with a down payment is the problem, renew your lease for another year, live frugally, save enough for a down payment for an owner occupy property.
Check out Fannie Mae Home Path properties (www.homepath.com) and put down 3.5%-5.0% for an owner occupy property and live there yourself.
At least your paying down the mortgage vs paying rent to an apartment complex owner. I think you have to live there for two years if you then want to turn it into a rental property.
You can also put down as little as 10% for an investor occupy fannie mae homepath deal.
If you want to get into a situation where you get creative, you should look into seller financing and find something off market.
Real Estate Investor · Woodland, WA · Member since 2013 · 37 posts · 21 votes
12y
Eric Anderson As mentioned above if you cannot afford anything other than 0 down, it would be advisable to save until you can at least put 3.5-5% down. The FHA 203k is a great option in that you can lump the rehab costs into the loan, and even some of the mortgage payments while the place is getting fixed up. But this is for OO only, and remember if you do buy a multi and you have no money, one major problem from a bad tenant in a nice fixed up place and you're up a creek.....
Phoenix, AZ · Member since 2014 · 6 posts · 1 vote
12y
Thank you all again for the responses. Very helpful information.
I will manage to get 10k by January so I'll renew my lease for another 6 months and try to get myself a 5% down multifamily home. OO is something I'll have to start out doing. I want to leave some breathing room in my capital in case of an repairs or emergencies.
So its possible to have a 10% down and not have the property OO?