Talked to Rocket Mortgage recently........

[Dale Miller]

Hello Everyone! 

Was recently told that I need to make a 20-25% down payment on a rental property. Told them I was interested in making 3-5% down so I can have funds to make repairs.I asked about FHA. They said FHA isnt available unless you live in the property for one year. Told them not going to live in it just fix and rent out. How am I supposed to invest in my first rental if I have to drop 25% of my savings on just the down payment? (Probably 40k). Don't feel comfortable risking what took me over 5 years to accumulate

[JD Martin]

Question: if you don't feel comfortable risking 25% on your investment, should the bank feel comfortable risking 95%? You don't have any real confidence of your ability to do this but you want the bank to make a bet on you. 

Investing can be scary and maybe it's not for everyone. What do you think is wrong with your plan such that your 25% investment is at major risk? 

You could always house hack a duplex or triplex if you want to go FHA.