Multi-family buying strategy for beginner

[Patrick Reilley]

I am a new investor and have set a goal to buy my first property within the next 6 months. I have only a small amount of capital to put down as a down payment, so I looked at what other assets I have at my disposal, which just happens to be fantastic parents.

They have agreed to supply the capital for the remaining 75% of the purchase price allowing me to make a purchase all cash. This will hopefully give me an advantage and allow me to buy at a discount.

Once the deal has closed, I would put debt on the property and return their capital to them.

Is this a sound strategy or are there things I might be overlooking? Is it reasonable to assume I might be able to buy at a discount as an all cash buyer? I'd appreciate any insight and experience BPers might have to offer.

Thank you!

[Aaron Montague]

@Patrick Reilley 

Parents with cash = great asset.

You might want to cut your teeth on your own.  There are several options out there for getting into 2-4 unit properties without putting down 20-25%.  All of these options involve owner occupancy.

0% Down:
NACA (https://www.naca.com)
VA Loan (http://benefits.va.gov/HOMELOANS/index.asp)
Rural Development Loans (Renovations MAY be included)
(http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html)

3.5% Down
FHA (http://portal.hud.gov/hudportal/HUD/topics/buying_a_home)

3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD/program_offices/housing/sfh/203k)

5% Down

Homepath Owner Occupied