20% Down Payment Workaround Ideas & Questions

[Eduardo Beltran]

Hi everyone! Hope y’all are doing great today & are staying hungry 👍🏻

I have a question in regards to the down payment on an investment property for those WAY more experienced than me.

I want to purchase my first investment property, but don’t have the full 20% down payment amount. It’s a $50k-ish down payment, but i’m currently working with $10k only. It’s for a duplex that is undervalue and will be able to sell or refi for more, but currently going for $250k for both sides.


QUESTION: How do I get around the down payment problem? I’m open to suggestions. I have a possible investor who might be interested in going in with me, but is there other options? I know there is hard money lending, but I will need to come up with almost $40k that route and I’m back at the same problem.

I appreciate all of your inputs and suggestions!

[Andrew Garcia]

Hi @Eduardo Beltran, I would recommend doing a 75/15/10 or an 80/10/10. That is what most of my clients do to get around the 20% down.

However, since you only have $10k, that is not viable for this property.

Partnering would likely be your best bet on this property.

Alternatively, you could move into one side of the duplex and live in it for one year using FHA 3.5% down financing.

Hope this helps! Let me know if I can be of any assistance.