Starting Out

[Pratik P.]

Hi everyone! 

I'm brand new to Bigger Pockets and have already learned so much! Thank you for this amazing community.

I'd like to get your guys' advice on my situation and what you think would be the best way to proceed. 

I'm 24 years old and have recently decided that I would like to invest in rental property in/near the Sacramento area. This would be with a partner so I have a co-borrower. Ideally, I'd like to go straight into multifamily properties as I'd prefer to have multiple doors under one loan instead of just one (if that makes sense). The main goal is to start small with maybe a 4/5-plex and 1031 my way into complexes with a lot of units over time. That's why I want to start ASAP.

My problem: I have great credit history. Never missed payments on anything with a score of 750. However, I'm only looking to put down 10k-15k for the purchase. Is it possible to finance a multifamily with less than 20% down? How would I even get approved for a property that's >400k? Or should I start with SFR?

Please let me know if you have any specific questions. Thanks for your time!

[Conor Hesch]

Hello @Pratik P. I used a in-house conventional loan on my first duplex (does not work on Triplex or 4 plex) and must be owner occupied of course. 30yr fixed, 3% Down, no mortgage insurance (way better than FHA). You can message me if you need details about my scenario. You are on a good path! Good luck!