Beginning Real Estate Investing

[Clarissa Artis]

Hello,

I am looking to purchase Rental places. My credit score it 785. However I am looking to not put anything down when purchasing the rental homes. Which way is the best way to go? Conventional Loan ? Owner Finance? FHA? I have been doing sooo much research I am having a brain overload its like I dont know where to start. Please help me. I am located in North Carolina.

[Mikael Winkler]

Hello @Clarissa Artis! Yeah, there certainly is a lot of information out there. It can be overwhelming. I see you mention FHA, are you looking to do a house hack, where you live in it for a period of time? That would allow you the lowest down payment options, as mentioned, through FHA.

Unless you maybe brought in a partner or found a really good owner finance deal, in which, the owner was ok with you putting nothing down, I think it will be hard to locate a deal without putting anything down. For example, on my first deal, I bought a duplex for $70k FHA, so 3.5% down. I think my cash needed to close was like $3100, with all the extra closing costs etc. A partner provided that cash to close amount, so nothing came out of my own pocket. However, it would've if I didn't have the partner.

Aside from a potential really creative owner finance deal, like I mentioned, I think the only actual loan product that allows for nothing down is a VA loan. However, don't let that stop you! If you're willing to get creative, you'll be able to get into a property with aaalmost nothing down haha