Creative investment financing

5 Replies

@Khari Lewis Try to owner occupy a duplex or tri. You can get in with a low down payment then move out a year later and rent the unit you were in. At the end of the year you have an investment property you bought with a low down payment. Call a local bank and ask to talk to a mortgage officer about getting pre approved to buy a home.

FHA has a 3.5% down payment on 1-4 units owner occupied. The majority of people go that route when buying an owner occupied that is also a rental. Virtually anyone can do this type of loan, but if you plan to buy more rentals in the future, i would work with a Banker or Broker as they have Portfolio loans designed for investors. Most banks and credit unions don't have access to these types of loans?

I hope this helps?

@Khari Lewis nice to see a fellow Tallahasseean posting on here.  Wife went to Leon.  I used to live right off of Tharpe.  As suggested above purchasing your own primary home is a great way to start "investing" with little to no money down.  For example, my first investment property was on Globe Court in Tallahassee.  I got a 0% down loan at 3% rate because I lived in the property and there was a federal program to incentivize people to buy in that section of town.  I then lived in the property and rented out my rooms.  I rented the rooms out at 1/2 the mortgage payment.  So I lived for FREE.  And i could have probably rented them out for more but I rented them to friends so it worked out for everyone.  Later, I then moved out of that property....rented it for 2 years...then sold it.  And since I lived in the property 2 out of the last 5 years....I paid NO CAPITAL GAINS on the property when I sold it.  So I got all the profits TAX FREE.  Many an investor use this method to start out.  Alternatively, I could have kept the property and refinanced a cash out loan to buy another property.  I've seen a few investors just keep buying and "house hack" their next few properties with great success.  

I hope this makes sense how I am describing.  Keep asking questions if you need.  Thanks!