Best path to buy 1st multi family, 0 cash
Own a home (2 years), equity is about 15k only. This year making an in-law, which should increase equity in home. 0 cash in pocket. The big I have is once I’ve educated myself enough (research, etc), I keep coming back to the same question. If I see a MFH, that looks like a good investment and have 0 cash or very little say 3%, is it recommended to use equity on house we live in to put down on MFH?
Or, do I just need to keep saving my own cash?...which may take longer
Most Popular Reply
I think a great way to get started is to find a local mentor. Someone you can learn from who is already doing what you would like to do.
Cash is not the biggest hurdle to get into multifamily. The biggest hurdle is knowledge and experience. Finding a mentor will help a great deal, and you will avoid many mistakes people make. That's how I started and I'm so thankful I did!
I tapped into my personal network from church, work, and Linkedin to ask around about multifamily. I finally found someone through a mutual friend. I reached out via Linkedin and asked to have lunch. Fast forward two years - I am now in multifamily full time, buying properties from 200-500 units in size.
I know you asked about zero cash down, but I believe the real answer is surrounding ourselves with the right people. Hope that helps!