Austin, TX · Member since 2019 · 9 posts · 2 votes
What are the best investments/ideas to begin with? Is it impossible to start owning properties / rehabbing properties or renting out properties with less than $25,000?
Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
7y
@Charles Ledet Absolutely not impossible. You can start with as little as a couple grand and a steady paycheck. With a lower down payment, I suggest you go with an FHA mortgage and house hack a multifamily property. It requires little down and you will have money left over to make renovations.
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 53 votes
7y
@Charles Ledet It's definitely possible! Be sure to look at non-traditional financing opportunities, which you'll find being talked about throughout the BP community. The first duplex I purchased was owner financed for all but about $7,500. The sellers (my bankers) owned dozens of properties and as part of their investment model, they would finance them to other investors at 5% or 6% with a balloon at 7 years. That was their way to make money without the hassle of broken water heaters or leaky roofs.
In fact, they even had a clause in our deed of trust agreement that I would need to pay them a certain amount of I paid off my loan before 3 years (like a pre-payment penalty). To be sure, those seller-financing partners aren't everywhere, but even today, some 10 years later, I'm still on the watch for owner-financed deals and even try to talk sellers into going that route if their money is just going to sit in a bank.