Not owning a home won't disqualify you from getting a mortgage on a rental. There something else wrong with your income, credit, job history or debt/equity situation. Just ask the lender(s) they'll tell you.
The cheapest way into real estate is to buy a property to live in since you can do as low as 3.5% down. You can either do a live-in flip (fix it while you live there to resell or refi), house hack (have roomates) or buy a 2-4plex and rent the other units while you live in yours. After 1 year you can do it all over again, and again, and again. Its slow, safe and works and builds up your credit, portfolio and gives you experience.
I house hacked a 4 plex. I put 3.5% down and used an FHA loan. I borrowed the entire down payment from my TSP (401k equivalent) by using a TSP loan. The result was no money out of pocket.
@Shane Pawich You may want to talk to different lenders. Each one has its own criteria. If you can't get a loan, ask why. And work on improving your situation. Good luck!
Unless I am terribly mistaken, I believe Bill E is correct and you can only have one FHA loan outstanding at any time. However, there are other low money down programs available. I believe I purchased my duplex with 5% down. As noted above, speak to various lenders (banks, credit unions, mortgage brokers , et al...)
Okay I’m sorry let’s me rephrase sorry guys, i can get approved for a mortgage with no problem , but if i go to a sheriff sale i need money in hand Correct? So i was applying just for a personal unsecured loan since i don’t own my own house they would not approve me. I tried to put my truck as the Lien rather then a house and they weren’t having that to do. So if i just buy the home with a mortgage do i have to live in i the to rent it out ? I was under the impression if i took out a mortgage i could not rent it out?
Sherrif sale is a whole other deal. Yeah you’ll need cash for that. You're going to need to talk to probably several hard money lenders although I have no idea if they’d lend for something like that.
There are several different types of mortgages. Think you have a little bit of research to do. Luckily bigger pockets has lots of good info to get started
@Shane Pawich As @Tyler Herman said, if you are going to auction you will need money in hand. I work with Investors who when strapped for cash do use a hard money lender, but unless you pay it off quickly, it can be a very costly proposition. You can househack with possibly a low down payment but you really need to talk to a "creative" lender. Feel free to reach out to me further. Thanks...Gary
And sheriff sale in PA for a HML can be tricky because Deed isn’t always recorded before monies are due, which means you can’t get a loan.
Private money or partnering is your best bet
Have you looked into mobile home investing? I have heard that it is a good alternative if you have little money 2-5k to get started. There is a youtuber who does just that his channel is called john Fedro.
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