How to afford monthly payment for low to no money down financing?

[Amber Martin]

Hey, another newbie starting out in Utah! I've read a bunch and listened to countless podcasts, but I'm stuck in the analysis paralysis mode. I want to pull the trigger on a SF, but only have enough for 5-3.5% down which makes monthly payments just out of my budget. Is there something I'm missing? How do investors afford low to no money down, but can somehow make the high monthly payment work? Is there a financing option that requires no monthly payments? Or do I just need to wait to get a bigger down payment? Thanks!!

[Joe Villeneuve]

You buy properties with better numbers.  When you analyze you start with the rent, then subtract your minimum CF (always pay yourself first), then the rest of the expenses (except the loan pmt).  This equals your maximum loan pmt.  DON'T GO OVER IT FOR ANY REASON.

Now calculate what your max offer is based on the terms you get from the lending source you're working with.  Remember, you can't go over that monthly pmt, so that will impact your max. offer.