I currently house hack a three family i purchased in 2015 which allows me to live almost for free. I have built quite a bit of equity in this property but not enough to touch. I am 100% debt free minus the mortgage but saving a downpayment for the next investment property is a slow and painful process. I have contacted multiple private/hard money lenders on recent deals i have found, only to find that these lenders are asking for almost as much " skin in the game" as it would cost me if i just went with conventional financing. I have also sourced some small lines of credit and personal loans but the associated risk in going that route does not sit well with me. I feel completely stuck and would hate to keep passing up deals for the next year or two that it would take to save 15 - 20% down. Any tips or ideas on how to get around this problem?
Keep looking at other lenders, there are ones out there that will allow a smaller down payment and some that will lend based on the appraised value and not the purchase price. You could also try raising some private money from family and friends to fund the down payment or even the full purchase price. Seller financing is another possibility as some sellers will be willing to let you have a lower down payment since they just keep the property if you can't make payments. Don't give up on your dreams, instead keep asking how.