Small loan mortgage for Investment Property - Impossible?

[Michael Kagan]

Hi there! I'm thinking about getting my first buy and hold property, and after all the reading and researching I've done, and considering my personal situation, I think an out of state turnkey would be best for me. Sidestepping all other tangent subtopics on this for now (I believe books have been written on the subject), my question is about financing only. For now. :P

At the moment I'm just looking at options for getting pre-approved. I have enough for 25% down for a 70k-100k property. But! I heard from a few RE vets AND a quicken loans broker that I won't be able to get a mortgage like that, especially for a non-primary residence. Does anyone have some perspective or experience with this and can shed some wisdom on the subject? I am a newbie, so general suggestions are welcomed as well, but I'm particularly curious about this financing question. Thanks!

[John Warren]

@Michael Kagan you can definitely finance a property of this amount, but you will pay fairly high closing costs. This doesn't mean it isn't worth doing, but there is the old saying "is the juice worth the squeeze". For lenders, it is the same amount of paperwork to do a 70k loan as a 400k loan, but they make a lot more on the larger ones. This means the ones that operate in this space have to make a few bucks on fees.