No out of pocket money

[Jason Revere]

Is the only way to not use your own money for a down payment through the BRRRR method? What if I find a turnkey property that doesn't require the rehab portion of the program? Is there a creative way to come up with funding for the down-payment?

[Nathan Grabau]

You could get an owner financed property on a short term note, and then have them agree to take second place on a lien behind a hard money lender. This is pretty unlike though unless you have a reason for someone to vouch for you with the owner and the hard money lender. 

If you do not do the renovate part of the BRRRR that is where you are adding value, so since you are not creating any value there, there is no way for that created value to be used for the loan value when you refinance.

If you find a cheap enough deal, some hard money lenders would let you take up to 80% of the ARV on a loan, but this almost becomes an ethical issue that you are giving someone so little for their property. It is also difficult to get a hard money loan if you are putting no money down and have not done flips/ BRRRR deals before.

I would encourage you to get the no and low The Book on Investing in Real Estate with No (and Low) Money Down: Real Life Strategies for Investing in Real Estate Using Other People's Money.  

The best way to limit your down payment in today's conditions is to use a 3.5% down FHA loan or a 3% down conventional loan. Both of these products are available for homes that you will use as your primary residence.

I would also encourage you to think from the view of other people, like what would make it so I would be willing to do this deal as a lender or seller. You might actually be able to come up with a creative solution that is not currently widely used.