0% down and cash flow?

10 Replies

I understand there is a way if you are given a $50,000 deal with market value of $200,000 but for the 99% of us that aren’t finding that once in a lifetime deal, how are you cash flowing with less than 20% down?

My math just isn’t working out on ANY property with less that at least 15% down (admittedly ignorant in costs)

Is the only option finding those that NEED to sell? Subject to?

Thanks for the tips, you guys!

If you haven't looked at 100 deals, then you haven't done enough to find the needle in the haystack. You have figured out that putting more money down increases your cash flow. So, the answer is put more money down if you want more cash flow. If you are looking for $100 per door, that should be easy, but it will take 100 doors to make any real money. If you are looking at listed properties, understand that the price is not the price. Make an offer based on your expected ROI. If they say no, move on. The listing agent just made that number up anyway. Look for off market properties in distress. Unwanted probate property that needs work. This is where the money is made. If you don't have any money to put down, go get some. Having money makes is so much easier to close on a deal.

@Jordon Mayo   Buying properties cheap and rehabbing, refinancing is one way.  One of my best ones was a $50k duplex in need of $25k in rehab. I found a local bank that would allow me to do 20% down on the purchase ($10k), and after the rehab was loan was $65k ($40k purchase funding + $25k rehab.  The duplex rented for $700 on each side for $1400 total, and my mortgage is $550 per month.  I was able to refinance out later and got my $10k back, and it's still cashflowing nicely.

Can be done. Depends a lot on your market.

Good luck!

- Tom

Only the absolutely riskiest assets are going to cash flow at zero down. I wouldnt touch a property that cash flowed at zero down.

Originally posted by @Jordon Mayo :

I understand there is a way if you are given a $50,000 deal with market value of $200,000 but for the 99% of us that aren’t finding that once in a lifetime deal, how are you cash flowing with less than 20% down?

My math just isn’t working out on ANY property with less that at least 15% down (admittedly ignorant in costs)

Is the only option finding those that NEED to sell? Subject to?

Thanks for the tips, you guys!

Jordan, I see you are in the Marines so I assume you mentioned 0% down because you want to use your VA benefits.

It's not impossible to buy cash flowing properties with 0% down.  My wife and I have done it 4 times.  It's all about getting a deal. You need to find a investor friendly real estate agent that has pocket listings. 

If you want more information on what we have done you can DM me.