Looking for Creative Financing Options – or if this is worth it

[Ivan Espericueta]

Hey everyone,

I found a listing on Zillow for a 2 bed / 2 bath property listed at $125K. It’s been sitting on the market for 206 days and doesn’t appear to need any remodeling. I spoke with a real estate agent who believes it could rent for around $1,300/month. Zillow estimates the monthly mortgage payment would be about $898, leaving approximately $400/month in potential cash flow before expenses.

The main issue is that I don’t currently have the 20% down payment saved.

I’ve considered renting out my current home and applying for a primary residence loan to take advantage of a 5% down option. However, I’m not sure I’d qualify, and even if I did, my monthly payment would likely increase. My credit score is 735, but according to the agent, I’d be looking at about - $100/month after factoring in management fees, vacancy, and maintenance on my current home.

Given this situation, what are some creative or realistic financing strategies I could explore to acquire this property? I’d really appreciate any advice or ideas from those who’ve been in a similar spot.

Thanks in advance!