Financing property that are not owner occupied

2 Replies

@Khemaro N. , if this is purely an investment property (not owner-occupied), you're not going to have much luck getting financing without 20-25% down. Conventional lenders won't take on that kind of risk, and rightly so.

The real question is, where to get the DP? Can you partner with someone that has the capital? Have you asked about owner financing? Is this property a good opportunity to BRRR and use hard money? Can you pull equity from your personal residence, through a HELOC, for example?

Hello Khemaro,

I agree with Jaysen. However, what you could do is look to acquire a distressed property, and depending on your credit, experience and liquidity, get a rehab loan with 10% down payment, rehab it, place a tenant and then refinance into a long term loan. In this scenario, you may be able refinance cash out your original down payment funds and maybe even some additional equity to recycle into the next project.