New York, NY · Member since 2020 · 11 posts · 3 votes
I’m a 20 year old guy who wants to start investing in Real Estate and my dream to start with one property with a cost ranging from 100-300k and add more to it over the years but I don’t know how much I need to start buying my first rental property.
Contractor · Gilbert, AZ · Member since 2020 · 3 posts · 3 votes
6y
You might look into "house hacking". Thats where you would buy a property like a fourplex for example and live in one unit while you rent out the others. Since its your primary residence you qualify for better financing options with very little down.
New to Real Estate · Humboldt County · Member since 2020 · 31 posts · 8 votes
6y
Hey I'm also 20 I have looked into this a bit. id suggest you look into creative financing or bigger pockets podcasts on that topic because doing it with no money is definitely feasible. Hopefully, that puts you in a good direction.
Contractor · Gilbert, AZ · Member since 2020 · 3 posts · 3 votes
6y
You might look into "house hacking". Thats where you would buy a property like a fourplex for example and live in one unit while you rent out the others. Since its your primary residence you qualify for better financing options with very little down.
Chandler, AZ · Member since 2020 · 295 posts · 272 votes
6y
You need lots of cash. If you're not in this camp like a lot of us, you need decent, stable income and a history to proove it. Then, you can start with almost no money down or if you can muster a 20%+ down payment, you can get you the best interest rates. You can get some loans with almost no money down but the fees can be high. It still may be an option though. Its also best to raise your credit score too, but thats a different subject. Assuming you have the income to satisfy a bank, you would need roughly $60K. $40k to put 20% down on a ready to live in $200k property and have a $20k emergency fund on the side which the bank will look for.
Rental Property Investor · Lees Summit, MO · Member since 2020 · 7 posts · 5 votes
6y
Hey @David Sajous and @Kyle Fairbanks. On average closing costs are 2% to 5% and the down payment can be up to 20% (Some situations more!). Because the down payment can vary drastically on your source/situation, the best way to find out how much money it will take is to talk to the source. Find some lenders, whether its at a bank, credit union or here on BiggerPockets and dive in! Don't worry about learning all the lingo before, but defiantly ask if you don't understand something. If the lender seems difficult to work with because you are wanting them to explain things, or they think you won't be able to get the down payment, then you probably don't want to work with them or ask to talk to someone else. The best way I start a conversation with professionals I want to work with, is by telling them I want to learn from them and find something that works for the both of us.
Also- my personal vote- I recommend house hacking! Whether its a small multi-family home or a single family home with roommates, you can make the most of your property by giving yourself a place to sleep while getting extra income. Just remember that even if your roommates are friends, they still sign the lease!
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
6y
I think you need some cash...maybe $1000 or $2000 depending on your job history, income, and credit. You might first go to your city's housing authority and see if they have any special programs for 1st time home buyers or low/no down payment programs. See if you qualify. If you do move forward and buy your first property. Rent a bedroom or two if allowed and bank that cash. After 2-3-4-5 years sell it for a profit and do it again.
If your city does not have a housing authority or any special programs like that, then search around for a lender that does. I've seen over the years a lot of great programs from lenders that can help you get started. See what their requirements are and then figure out how to meet them. BBVA has some cool programs in my area right now. I believe BofA has pretty neat program. Wells Fargo and others have had them in the past.
You can also see if the state you live in has any special programs for 1st time buyers....sometimes they have certified lenders for those and those lenders often know about other programs that might be available.
VA has a zero down program so if you can get in some military experience you might try to take advantage of that....even if you don't want to do full time you might can join the reserves and still qualify...and bank some extra cash on your weekend duty. I believe VA foreclosures also offer same type of financing for non-military buyers, so you can look at that if there are any VA foreclosures in your area.
If you are a teacher or public service employee you might ask around to see if there are any programs that serve this community.
Rental Property Investor · Chicago, IL · Member since 2017 · 11 posts · 7 votes
6y
Hi David,
If you’re willing to take a little risk you can start with as little as $50,000. Depending on the market you’re in you should be able to find a lender who can provide you with leverage and reimburse a portion of construction cost. Then you can refinance or sell the property and move onto the next one. Depending on the route you take you’ll either grow your portfolio while making back most of your cash or gain experience and substantially increase your cash on hand.