I am looking to start investing but don’t know how to get past the down payment. I have enough in case anything happens to any place I buy but not enough for a down payment.
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
5y
Try reading Scott Trench's book Set for Life. Increase your income, decrease your expenses and consider house hacking as a first rental. You can get in for a lower down payment as an owner occupant than you can as an investor, so it's a great option if you can take advantage of it!
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
5y
Try reading Scott Trench's book Set for Life. Increase your income, decrease your expenses and consider house hacking as a first rental. You can get in for a lower down payment as an owner occupant than you can as an investor, so it's a great option if you can take advantage of it!
New to Real Estate · Louisville, KY · Member since 2020 · 7 posts · 7 votes
5y
Hey Nick,
I also believe owner occupancy is a great way to start with a small down payment. I may also suggest speaking to local banks and credit unions about your plans and potential deals. They might be able to work with you to adjust a mortgage to your needs.
I would recommend you take a listen to the BiggerPockets Podcast Ep. 440 with Daniel Iles. To summarize, he was able to get loans based on the appraisal of the property, and not the purchase price, allowing him to purchase a property with no down payment.
Rental Property Investor · Chicago, IL · Member since 2021 · 23 posts · 17 votes
5y
@Nick Hastings
I agree with the above posts. Not sure of your situation, but I purchased my first home with 3.5% down using a FHA loan. I had two friends move in with me to help pay the mortgage. That lasted for a while and then I ended up moving out and renting it for several years and did well with mortgage paydowns + appreciation. Good luck