Commercial Real Estate Agent · East Providence, RI · Member since 2014 · 80 posts · 10 votes
How much money should be saved before buying your first rental?
After some thought I think my first unit is going to be a SFH. They seem much easier to manage. After I get in and learn the basics I will buy a multi as my next.
With that said SFH's in my area range from 129-170k. How much will I need to have in cash down to get into my first investment?
I know 20% is general. But is there any way around this aside from FHA Multi?
Investor · Los Angeles, CA · Member since 2013 · 71 posts · 16 votes
12y
You can partner with another investor. If it's solid enough deal, another investor might be willing to go 50/50 so then you would only have to come up with half the money.
Otherwise you could live in the house for a year and then rent it out. Then you don't need as large of a down payment because you'll be owner occupant. I believe for FHA you have to live in it for a year but I don't know for certain. I'm sure others will chime in.
Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
12y
there a lot of ways around it- lots of special programs depending on the area, your background, etc. I would be thinking about the amount saved in reserves something to consider more than the downpayment. There are a lot of reasons to avoid putting a lot of cash down- put it all depends on your views and goals.