I’ve never done this because I already had a house prior to getting into RE investing, but house hacking. I believe some banks you can put as little as 3.5% down.
If I knew then what I know now, I would have bought a multi family home.. lived in one unit and rented the other unit(s) out. As a primary residence, you are not required to put as much down as an investment property.
Plus... you’re living in a place where your tenants are essentially paying off your mortgage. Depending on the numbers.. it could be you living in a place at an extremely discounted price or possibly free!
Hope this helps!
@Tristen Corman the best way is to not use your money at all! Find the deal, partner with someone who has the money and y'all split everything 50/50.
@Tristen Corman I would recommend "house hacking" using an FHA or 203k loan. You can purchase up to a 4plex with as little 3.5% down. If you find a house that needs major repairs the 203k loan will allow you to include all the repairs into your loan. After living there for a min 1 year (FHA guidelines) refinance into a conventional mortgage and do it again (FHA loan).
I recently purchased a MFH and currently house hacking. My tenants are paying my PITI and the difference to me is $50 a month. After one year I will finance out of FHA loan and repeat the process.
I hope this helps!
Hah - if I could have just $1 for every time I hear this question...:)
One - a nice Luxury House Hack is the bomb. As an owner-occupant you are subject to the easiest financing options. There are other advantages as well.
Two - needing to make a downpayment is not the same as needing to write a check out of your own account. OPM comes in many shapes and sizes :)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing