How Do I Fund Purchasing My First Rental with $0

[Brian Carnesecchi]

I am an experienced realtor who has been out of the business for about 2 years. I am looking at a great prospect for my first rental property but I have no money to put down on it myself. As I think about calculating what payments would be if I had a cash investor to fund it, what kind of loan would be typical from a cash investor? Interest-only for a set period of time such as 2 or 3 years? And what kind of interest rates should I expect to pay a cash investor right now? 

Thanks of your help!

[Randy Rodenhouse]

Most lenders (which you are calling cash investors) will require a down payment of some amount typically 20% or more. I don't think it's wise to buy a rental property if you have no capital since even after you buy the rental property any hiccup can throw you off and you need reserves in case this happens. Maybe instead do some wholesaling to save up some money and then look for a rental, or buy a house Sub2 existing loan with little to no money into the deal, or possibly buy a house on lease option.