Rookie Reply: Do You Have to Put 20% Down on an Investment Property?
This week’s question comes from Mack through Ashley's Slack channel in the Real Estate Rookie Bootcamp. Mack is asking: How can I buy an investment property without putting 20% down?
Mack has the question that many real estate investors do: how to buy with low or no money down? Thankfully, the world of real estate has a plethora of financing options from low down payment conventional and FHA loans to zero percent down loans from certain providers. Granted, you do need to check a few boxes before you can get these.
Here are some suggestions:
Understand the main differences between FHA loans and conventional loans
Use house hacking as a way to qualify for owner-occupied financing
Calculate out your PMI beforehand so you know the true cost of a sub-20% percent down loan
Use a HELOC on your current properties as the down payment for new ones
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Rookie Facebook Group
Real Estate Rookie Youtube Channel
Check the full show notes here: https://www.biggerpockets.com/rookie142
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.