Down Payment Minimum for First-Time Home Buyer of Rental Property

[David Martin]

Hello!

I'm currently renting an apartment and have been considering purchasing an investment property to Airbnb. I have zero debt and don't own a home -- what is the minimum down payment I can put on a single unit investment property? I've seen 15% in a few places, given I have a good DTI ratio and high credit, but I'm curious if I could go as low as 10% since this would be my first mortgage.

Thanks in advance!

[Nathan Gesner]

Quote from @David Martin:

You can purchase an owner-occupied property with less than 5% down. You need a place to live. Why not purchase a property with two or more units using the low-down option? Occupy one, rent out the other(s).

Scott Trench started with a fourplex. He rented the three other units, a spare bedroom in his apartment, and he even rented out his primary bedroom as an AirBnB and slept on the couch to maximize his return.