Understanding How to Use Traditional Funding

[Holly I Hansen]

Hi guys, I'll preface this by saying I'm a new investor and I am trying to understand how I can use traditional funding on investment properties. I watched David Greene's How to Become a Real Estate Millionaire webinar last week whereby he talked about adding small multis to your portfolio each year and renting out one unit. When I called my bank (Quicken Loans), they said it would be considered an investment property, even if I live in one unit because I already own a home, which I would be renting out. Therefore, I'd have to put 20% down. In that case, why would I even move each year? I could then just stay in the house I'm currently living in and buy a property and rent all the spaces out. Am I missing something? Thanks!

[Austen Mueller]

I would do a little shopping around not all lenders are the same. However If you can afford to do that, that works too!