What are the best options for mortgages when looking to buy investment properties? I have heard of people having very little money but being able to get a loan and start building their portfolio, is this a myth?
Good question as I'm facing similar challenges.
@Adam Hedio - I would suggest/recommend that you speak with a mortgage broker who should be best suited to advise on the approach depending on your personal circumstances. I do know that investment properties will be financed at a higher % than the regular primary residence 15 or 30 yr mortgages.
Start out with a mortgage broker imho from my limited experience.
if you will occupy the property for at least a year, you can get up to a 4 unit building with 0-3.5% down in most cases
With investment properties you will be required to put down 20-25% going through banks. One way to get a property is to do an FHA loan (3.5% down) live in it for a year, then use it for a rental. That would allow you to put the least amount of money down, however you do have to live in the property for a minimum of a year. Also, just a FYI the PMI will be on the loan for the life of it, so you would want to refinance into a 15-30 year mortgage so that it will fall off, but expect to pay a higher interest rate when re-financing the property as an investment as @Abhilash Joseph mentioned above.