How to start with little money

Question

I recently joined with the hope of buying properties to rent out. I have around $10k cash and $15k equity in my home. I'm becoming discouraged because a decent property in area (Southwest Ohio) would be $80k - $100k. A property less than that and I'd be afraid of attracting horrible tenants. An $80k property would need $16k down plus a few months reserve plus lawyers and property management fees. Basically EVERYTHING I have. I'm too nervous to throw ALL my assets at this from the start.

Anyone have some advice?

Chad Duval · Answer

@Chris Brademeyer buy using a 3.5% down FHA loan. Live in it for 12 months (per loan clause) and then convert it over to a rental.

Thomas S. · Answer

When starting a business you need to be prepared to risk it all to succeed. It comes down to education and preparation. Business that fail are ones which the planning and preparation fall short.

Income investment properties are a proven system you simply must chose properly and have contingencies in place to ride out the difficult times. If you lack the confidences in your financial position wait and save more until you are more confident. This is not a race it is a slow life long path..

Matt B. · Answer

don't be afraid to take calculated risks. You are young and can completely recover from any damage.

Robin Wilk · Answer

You could also look for JV Partners to help with the funding as well as Hard Money Lenders and Private Money Lenders too.

Kevin Hunter · Answer

>Education>Books and Resources

Kevin Hunter · Answer

@Chris Brademeyer, read "The book on real estate investing with low or no money down."

That's a good place to start