When buying your second property do you have to put 20% down?

[Griffin Brenseke]

I bought my first House Hack in February in Scottsdale, AZ. A 3 Bed 2 Bath that I converted into a 4 Bed 2 Bath. It’s going really well I’m bringing in $2450 a month and my mortgage is $1885.

I’m looking to expand my business and not sure if I want to live in my next property because I love my home right now so much.

If I were to buy another home/property do I have to put 20% down or is there other ways to put less money down if I don’t live in it. If so do you mind explaining what else I can do.

Thank you so much BP community you all rock!

[Art Shalomov]

If you are not planning on moving in to the new property, the lender will consider it an investment property, so you will need the 20% down. In order to buy an investment propery with less than 20% down you would have to find a property with equity or value add. You would buy the home with 10% using hard money, improve it and refinance the existing lien using the new appraised value( will the lender allows using the new value on a R/T refi without a waiting period).  They key here is to find the right property. Hope this helps.