I am new to BP and planning to buy a Townhome in Norther Virginia area to rent. I intend to keep it long term . I plan to continue this process if I can manage my first rental.
I would like to know my options to finance to buy rental property. I Do I need 20% down or can i get financing with less money down. I have good credit score. I currently have SFH .
@Narsim Wudali Welcome to the site! Normally you are going to have to come up with the 20% down regardless of credit score. Lenders like to see that you have skin in the game. You could look into a HELOC or something similar.
Buy from an owner who can finance you with 10% down, nonrecourse
You'd get your lowest downpayment and best interest rate if you move out of your existing house and into this new one. Then rent out your existing house. Live in the new one for 2 years and repeat. Many people have done this with great success. Also if you suddenly have to sell your house, it should be tax free because you lived in it 2 out of the past 5 years.
An alternative is to buy a duplex or even 4-plex and live in one of the units and rent the rest for additional income. Of course, you'd be living right next to your tenants so that option is personal preference.
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