You Don’t Need 20 Percent Down to Buy Your First Rental Property. Here’s why.

You do not to put 20% down to purchase a rental property.

I repeat, you DO NOT need to put 20% down to purchase a rental property. Here's how 👇🏾 

With interest rates at historic lows, mortgage lenders are more willing than ever to accept applications from those seeking financing solutions - even if you don't have perfect credit or a 20% down payment.

The days of needing 20 percent down and a 700-credit score are gone. If you live in the property, you can qualify for an owner-occupied loan for as little as 3% down. This can easily save you thousands on your down payment compared to traditional investment property loans!

What is owner occupied financing?

🔌 So, here’s the first plug:

Owner-occupied financing is a bank term and the next time you hear this term, I want your ears to perk up.

Owner-occupied financing opens many options for home buyers. By living in the property, you become eligible for low down payment programs like the FHA and conventional loans that allow you to put as little as 3% down payment on the house. This easily can save you THOUSANDS on your down payment.

Owner-occupied financing changed my life. I have purchased 4 homes using owner occupied-financing. (and working on the fifth 😉)

How can I make rental income?

🔌🔌 Here’s the second plug: House-hacking!

Let’s bring it all together. You can leverage owner occupied financing to purchase a rental property and then you can Househack.

So, What is house-hacking?

House Hacking is one of the least expensive ways to obtain your first rental property and live for free (or cheap!).  

The simplest definition of House hacking is when you buy a multifamily property where you will live in one unit and rent out the other(s).

Here's an example. If you purchase a duplex, you can live in one unit and charge a tenant to rent the other unit, the cost of your mortgage.

Another example is if you can purchase a 3-unit building you can live in one unit and use the additional 2 units for rental income.

Again, this can save you THOUSANDS of dollars per year by eliminating your housing expenses. 

If you're ready to take the next step into building generational wealth, I’m excited to help you get there.