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 :)
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