Need Advice: Good credit, Good Income, No downpayment.

[Sang Yu]

I'm a newbie in the Sacramento area looking to buy my first SFR rental. I bought my primary residence about 15 months ago using a VA loan with no money down(Just $3k to cover closing costs). I have good credit (~750), good stable job/income, but not much of a downpayment ~$2k) What would be your strategy to secure a second rental property in the $190k - $220k price range?

[Chris Mason]

@Sang Yu - if you have solid income, as you say you do, then saving a down payment over the course of a year or two shouldn't be an issue.

If you want to do some bare minimum stuff, live in your current place 12 months, go buy a new place that you will live in for another 12 months putting 5% down (or have a lender run numbers to see how much VA entitlement is remaining), and convert the old place to a rental right at that 12 month mark.

Eventually you will have to suck it up and realize that being a real estate investor requires that from time to time you actually save up a down payment.... But you might be able to squeeze another property or two out of gaming the system.