First time buyer/no down payment in CA or AZ?

Question

Hi!

I have helped my parents with their mortgages for years and am finally reading to buy my first place and start my own portfolio! I want to purchase investment properties in California (Southern California) and Arizona (Scottsdale) and ideally do STRs (open to other options though).  How can I get my first rental property with no down payment? I have found programs up to 90%, but didn't know if there was an option to do a second for the remainder? Any suggestions would be greatly appreciated.  I am eager to buy ASAP!

Thanks!

Erik Estrada · Answer

Hi Laura,

There's a few ways to achieve 100% financing for an investment property.

- Seller Financing

- Cross-collateralized Hard Money Loans

- Using Helocs/cash out refinances from other properties you own and using a no doc DSCR loan for the rest of the purchase.

- Private Money (From a Private investor that is willing to finance 100% of the purchase)

Ken Maguire · Answer

Hi Laura,

Congrats on getting started on your portfolio!

A couple things come to mind for what you are asking. Specifically for your question of the extra 10%, you could see if the seller would be willing to carry and coordinate with them a repayment schedule you would both find reasonable.

The other way which is similar to the above for covering the other 10% is creatively finance deals(seller carry or subject to.) Those will vary depending on the seller's motivation for selling.

Hope this helps.