Input please, pretty please.

[Younness Dehbi]

I was going to buy my first rental here in Houston, TX, I was going to put 20% plus pay closing cost on a 94K ranch style property, I'm about to put 30K to acquire this, I think this is excessive, I'm doing something wrong, anybody can tell me what I'm doing wrong?

[Bob Smith]

Generally speaking, your numbers are ok if your buying in a great neighborhood with mostly owner occupied units, low crime, and stable to rising prices. I think your trying to ask how to purchase this home using less of your own money. It can be done but it will have other ramifications.

One way is to ask your bank for a 15% down mortgage.
Another, ask the seller to pay closing cost and in crease the sales price
Finally, consider a lower loan plus a line of credit. The line of credit should be less costly to establish and should have a lower interest rate. Pay this line of credit off but then use it to help fund your down payment for your second property