First Time Investment Property

5 Replies

I am looking to buy a first time investment property and not live in the place. Can I put 5% down? How much do I have to put down and not live in it? Do I also need a conventional loan? Please give me as much details as possible.

There are multiple ways of going about it. Since you do not want to live in it the FHA 3.5% Down won't work for you. However you can go a few other routes.

1. Partners: If you need help funding a deal. Having a Partner is a great way to go. Just make sure you choose a partner who has the same goal as yourself.

2. Private money: There are a ton of people out there who has money and want to put it to use. I recommend building trust and a relationship with the individual you borrow money from first. 

3. Hard money: This technique is requires some skill if you are purchasing a rental property. Would have to make sure you pay your hard money lender back. To do so you would refinance on the property with a bank. Take that money to pay off the lender. Now you have a property with potentially no money out of pocket.

4. Seller finance: If the owner owns the property free and Clear. The owner would become the bank. Great way to get in a property with no money down.

I recommend reading https://get.biggerpockets.com/nomoneydown/

Get book filled with a ton of options. Good luck with everything! 

Ok gotcha. There are a few things you can do when it comes to the conventional loan side of things outside of the "FHA" Loan side of things. Just to name two of them:

1.) The "Conventional 97" It's for home buyers with not the best of credit, but would have to be at least average. Would have to verify income and employment. The 3% downpayment program also allows for a gift of downpayment. You can do some more homework on it. 

2.) USDA Rural Home Loans: This Loan does not require a down payment at all. Similar to the VA Loan. However there are some requirements such as location. It's mainly geared towards non urban areas.

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