Are Low/No Money Down Real Estate Deals Actually Viable?

General Real Estate Investing
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Are Low/No Money Down Real Estate Deals Actually Viable?

Ken Almira
Member since 2025 · 18 posts · 7 votes

Hey everyone,

I recently saw a post from someone asking how to invest in real estate with $25K, and most responses suggested that it's not enough and that putting it into an index fund would be a better option.

This got me thinking—are the low or no money down strategies I hear about actually viable? Do experienced investors use them successfully, or are they more of a gimmick?

If these strategies do work, what types of deals or financing methods are commonly used? Are they realistic for someone just starting out in REI like me, or do they come with major risks that aren't always talked about?

Would love to hear from experienced investors on whether these approaches are worth pursuing or if having more capital upfront is truly necessary.

Thanks in advance for your insights!

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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
1y

Generally, the only widely available pathway into RE investing with low cash is via househacking where you get a primary residence loan with a very low downpayment. Most on-market purchases with a Conventional or DSCR loan will require 20%+ down. There are lenders who will do 15% down, but the terms will make the loan impractical in the vast majority of cases.

BRRRR is doable to recycle your cash, but you have to find a really good deal (hard to do right now) and will still need 10%+ on acquisition using hard money in most cases. Having a PML who will give you sweetheart terms can make this easier.

In short, there are select cases where an experienced investor with a strong network can turn deals with low cash, but someone trying to get started with $10k-$20k is going to have a very hard time. 

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  • Justice Bowers
    Real Estate Agent · Fort Worth, TX · Member since 2024 · 22 posts · 1 vote
    1y

    Hey Ken! The only way I see a low or no-money-down scenario being viable is if you have a lender willing to lend based on the Loan-to-Value (LTV) ratio, and if you can find a deal where your total costs are low enough to keep the LTV within the lender's limits.

    So, while it’s possible, it’s tough to find deals that fit these strict criteria. That said, there are other creative financing options that might allow you to put down little or no money—like seller financing, lease options, or even partnering with someone who brings the capital. These options often come with their own set of challenges, but they’re worth exploring if you’re willing to get a bit creative.

    In short, it’s not easy, but with the right strategy and persistence, it’s doable!

    0Reply
  • Walter Bowser
    Member since 2023 · 44 posts · 19 votes
    1y

    Hi Ken, I would say in the vast majority putting down 25% on an investment property is the safest way but there are ways to put a lower down payment and sometimes little to no money out of pocket. 


    For example, I just bought a property out here in OKC that I got under contract at 80% of the appraisal value. I was able to secure a DSCR loan that allowed me to put no money down on the property. I just had to pay for some minor rent ready repairs like replacing the carpet and painting the interior. This doesn't happen for me often, but there are deals out there like this.

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  • Ken Almira
    OP
    Member since 2025 · 18 posts · 7 votes
    1y

    @Justice Bowers

    Yeah, after a recent conversation, I’m starting to think that simply saving a lot more money might be the best answer to my problem. While creative financing options are interesting, having more cash on hand seems like it would put me in a much stronger position and open up better opportunities.

    That said, I’m still curious—at what point do you think someone is truly ‘ready’ to start investing in real estate? Is there a certain amount of savings or financial cushion that experienced investors recommend before jumping in?

    0Reply
  • Ken Almira
    OP
    Member since 2025 · 18 posts · 7 votes
    1y

    @Walter Bowser

    That’s really interesting! It’s good to know that there are ways to structure deals with little to no money out of pocket that could work.

    Your OKC deal sounds like a great example of how the right numbers can make a big difference. How did you find that deal? Was it through networking, direct-to-seller marketing, or just keeping an eye on the market?

    0Reply
  • Walter Bowser
    Member since 2023 · 44 posts · 19 votes
    1y

    I found this one off of Investor Lift. They had it priced too high at first, but then I made them an offer where the deal made sense for me to do it at. They ended up taking it. It was an odd one though because the house was actually in good shape and did not need a lot of work.

    0Reply
  • Ken Almira
    OP
    Member since 2025 · 18 posts · 7 votes
    1y

    @Walter Bowser

    Nice! Sounds like a solid find. Thanks for sharing your insight! It’s always great to hear real examples of how deals come together. Wishing you continued success!



    0Reply
  • Justice Bowers
    Real Estate Agent · Fort Worth, TX · Member since 2024 · 22 posts · 1 vote
    1y
    Quote from @Ken Almira:

    @Justice Bowers

    Yeah, after a recent conversation, I’m starting to think that simply saving a lot more money might be the best answer to my problem. While creative financing options are interesting, having more cash on hand seems like it would put me in a much stronger position and open up better opportunities.

    That said, I’m still curious—at what point do you think someone is truly ‘ready’ to start investing in real estate? Is there a certain amount of savings or financial cushion that experienced investors recommend before jumping in?


     I think you're spot on. I'd say the ideal amount saved would depend mostly on what markets you're looking to invest in. If you're looking to invest in a top MSA like a Chicago, LA, or New York than your capital needed will most likely be significantly more than if you're looking to invest in secondary or tertiary markets.

    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    Generally, the only widely available pathway into RE investing with low cash is via househacking where you get a primary residence loan with a very low downpayment. Most on-market purchases with a Conventional or DSCR loan will require 20%+ down. There are lenders who will do 15% down, but the terms will make the loan impractical in the vast majority of cases.

    BRRRR is doable to recycle your cash, but you have to find a really good deal (hard to do right now) and will still need 10%+ on acquisition using hard money in most cases. Having a PML who will give you sweetheart terms can make this easier.

    In short, there are select cases where an experienced investor with a strong network can turn deals with low cash, but someone trying to get started with $10k-$20k is going to have a very hard time. 

    2Reply
  • Ken Almira
    OP
    Member since 2025 · 18 posts · 7 votes
    1y

    That makes a lot of sense. I’ve been looking into Florida markets like Tampa, Orlando, and Lakeland, so the amount I need to save will definitely depend on the price points in those areas. I’ll keep saving and researching in the meantime to get a clearer picture of the capital needed. Appreciate the insight, truly! This is very helpful.

    0Reply
  • Ken Almira
    OP
    Member since 2025 · 18 posts · 7 votes
    1y

    @Patrick Roberts

    Understood. House hacking might be a great way for me to get started in real estate while keeping my costs low. I’ll definitely look more into it!

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    It's viable and can be done but risky. I think that's why most argue against doing it unless you are an experienced investor and have cushion. People do creative deals all the time but they know what they are doing. They also have deals under their belt and cash to use if it's needed. As a newer investor it's simpler and better to focus on the basics until you have more experience. House hack is one of the best to get you started and feet wet. 

    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    1y

    In this market, with interest rates and prices at where they are, they're usually not viable (i.e. don't cash flow). Those that do are either 1) in areas that are bad and usually only "cash flow" on paper or 2) with exceptionally good deals. Multifamily can work although "no money down" on such properties usually involves a syndication which may be no money down (or low more likely) but given it's a partnership, isn't a 100% financed deal.

    Of course, no money down deals for flips still make sense, but that's a different matter entirely.

    Podcast Guest on Show #121
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  • Aristotle Kumpis
    Specialist · Long Beach, CA · Member since 2011 · 875 posts · 394 votes
    1y

    There was a post that I was interacting with on the Classifieds section where someone has a program that allows you put something like $5K down. You must have good credit. And they essentially buy the property and then in 5 years, you refi and give them the down payment back. So you are able to get the cash flow, tax deductions, etc. But you still own the property 100% in your name. 

    0Reply
  • David OjoPro Member
    MD · Member since 2024 · 58 posts · 26 votes
    1y

    @Ken Almira easy!

    0% Business credit cards + hard money loan = 0 money out of pocket. This was the strategy I used for my last BRRRR project. You just have to make sure you get your math right.

    1Reply
  • Dominic M.
    Property Manager · Northern Virginia & DC · Member since 2020 · 157 posts · 69 votes
    1y

    I would suggest house hacking and/or creative financing. For the latter, before going out alone, help and bring value to a seasoned investor who who utilizes creative financing. In return they can show you exactly how they structure the deal and all the proper paperwork. This knowledge is worth more than one deal. 

    2Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    With FHA financing you can finance 96.5% (that's 3.5% down) or VA financing at 100% financed. With both programs you can buy 1-4 units as long as you occupy 1 of the units. There are some conventional financing for owner occupants with 5% down. Take any of these 3 programs buy a multi-family of 4 units with 1 owner occupied. Or buy a single family and house hack bedrooms or a portion of that property. Personally, I bought a 3 bedroom house as my first purchse and lived there while renting bedrooms and 2 bedrooms rent paid all of the mortgage payment and 2/3 of the utilitites. And I literally started with no money and borrowed the down payment. I told this story on Bigger Pockets Podcast #82.

    David Krulac

    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 682 votes
    1y

    Hi Ken,

    Within my 20 years of experience, I've seen plenty of low or no money down deals actually work—but they're never as easy as those "get rich quick" ads make it sound. FHA house hacking is probably the easiest for beginners—buy a duplex or triplex with just 3.5% down, live in one unit, and rent the others to cover your mortgage. Lease options are another play, where you rent a place with the right to buy later, sometimes using part of your rent toward the price. Then there's subject-to, where you take over a seller's mortgage payments, or seller financing, where they become the bank—both work great but need some know-how. Partnerships are gold too; I've seen deals where one person brings the money, the other handles the work, and they split the profits.

    Company hacking is a bit more advanced—getting added to an LLC that owns the property, improving it, then refinancing to pay the seller out—but it can be powerful if you and the seller trust each other. All these strategies work, but the less money you have, the more you need to know the game and surround yourself with good people. $25K can absolutely get you started—it’s all about finding the right approach for your situation. Happy to chat more if you want to dive into any of these!

    Jorge

    Graystone Investment Group4.6268 Reviews
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    1Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    1y

    @Ken Almira low money down is not a gimmick. I have had a ton of clients make a lot of money here in the Chicago area over the years. It is a LOT harder now than it was five or six years ago. You might be breaking even or losing a bit of money the first year or two while you stabilize it. It probably is still worth it if you can raise rents, reposition the property, improve the efficiencies of the property and optimize debt when the time is right. 

    1Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    1y

    @Ken Almira, as others have noted, there are ways to do this, of course.  There are those great deals, with seller financing, etc, etc.  But, those deals are all costing something, typically time, and a lot of it.  People are trying to uncover that 1 in a thousand, if not one in 10,000 deal.  

    Or there can be being a GP in a syndication, where you have, effectively, no money down: source $3mm deal, commit $50k with your LPs, collect 3% acq fee ($90k) without ever funding your $50k... you pocket $40k, and have a $50k interest in the deal.  There are costs that you are likely paying for, at least temporarily, to get this all rolling, but net effect is "no money down" for the GP.

    You could get your rich parents to loan you money from your inheritance, which is "no money down" for you...

    But, what I think you are actually getting at is, like your example, "how do I get started with little to no money?"  To that, I would answer: a lot of creativity, a lot of hard work, and a lot of luck while taking on a lot of risk.  If I only have $10k to my name, and I happen to find a deal that takes no money down, a) you likely still have some costs, and b) what happens whatn the boiler goes out 2 weeks after closing and the chimney starts leaking a week after that?

    2Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Ken Almira:

    Hey everyone,

    I recently saw a post from someone asking how to invest in real estate with $25K, and most responses suggested that it's not enough and that putting it into an index fund would be a better option.

    This got me thinking—are the low or no money down strategies I hear about actually viable? Do experienced investors use them successfully, or are they more of a gimmick?

    If these strategies do work, what types of deals or financing methods are commonly used? Are they realistic for someone just starting out in REI like me, or do they come with major risks that aren't always talked about?

    Would love to hear from experienced investors on whether these approaches are worth pursuing or if having more capital upfront is truly necessary.

    Thanks in advance for your insights!

    Yes, they are viable, but you have to know what you are doing and few people teach it properly. This is not "first time investor territory" and joining a "community" to get video training is very dangerous for this type of investing. It takes "hands On" training in order to avoid the pitfalls. Every deal is different. No two deals are the same. So, the solutions are very different. A wrong decision is costly.
    0Reply
  • David Hedges
    Investor · Crown Point, IN · Member since 2014 · 177 posts · 84 votes
    1y

    low or no money deals are out there, but take a bit more work, and ones that work are hard to find. Most are probably going to require creative financing. 

    I had one that I was able to pick up last year. I'd purchased it on a land contract, paying interest only for the first 5 years, with the ability to extend another 5 years if I'm not able to find favorable financing to refinance within that time period. Based on the growth in that area, I suspect I will be able to refinance within the 5 year window and not require any cash into the deal. 

    0Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 970 posts · 639 votes
    1y

    Investment loans generally carry high down-payments and costs. If it is a personal home, you can get a conventional mortgage on something like FHA for little money down and rent rooms out. Another way I have done was to purchase a personal home, and I hosted an international student. The program payment just about paid my mortgage PLUS one of the best experiences I had.

    Also, I administrate a coinvesting club where we all invest in large apartment communities and other types of deals as a group. We generally do one per month and each club member that wants to get involved can do so for as little as $5K. So, this is less than a downpayment but it also offers a way to really diversify your investments. 

    Spark Rental Co-Investing Club577 Reviews
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  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    Because I started with no money the first 11 properties that I bought were all 100% financed in one way or another. I used bank/credit union mortgages for 80% to 97% of purchase prices. To make up the difference of the total price, I used seller credits, lines of credit, and second mortages on other properties. One was FHA financed (97%) another was a VA mortgage assumption, and one was seller financed first mortgage. The first house I bought, I lived there rent free, AND mortgage free, while renting rooms to other people. Real Estate is wonderful! I told the story of that first house in Bigger Pockets Podcast #82

    1Reply
  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    1y

    @Ken Almira I had several investor clients close on properties last year with assumable mortgages (not sub-to!). 

    One put 19k down to get a 2.7% rate.

    One put 0k down to get a 4.9%

    One put 50k down to get a 2.5% rate. 

    This is a great way to get started and if you are creative you can certainly get a good deal with low down!

    The Assumable Guy544 Reviews
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