Buying my first rental, with little money down....

[Michael Coiffman]

Hello Bigger Pockets family,

Here is my current situation, my current credit is in the mid's 500's , I have income close to the $90's / year, but no money down.

I will have access to maybe $7k by next year. My desire is to start buy and hold investment asap. I know the house hacking concept but 

we rent in a really nice neighborhood and we have no plans for buying primary residence, I was want to start rentals buy and hold for 

passive income later refi and get the next one ans so on.... I can get my credit to mid 600's in the next 6 months since I have been paying 

debt and dealing with creditors. I have this big dilemma.... I see myself taking a while for getting 20 to 25% down and house hacking it is 

not in the picture. Can you guys give me guidance so I can get started in my current situation ? Thanks :)

[Tom S.]

@Michael Coiffman  Personally if you think your credit will be in the mid 600's in only 6 months I would wait on buying and see if you have more financing options.

If you're looking to buy right now then an owner finance deal would probably be your best bet.  You'll probably have to put down something though.

My first owner finance deal was $80k, and 10% down, so $8k.  I had about $2k in closing costs total, and as a rental , side aside a reserve of $5k.  So about $15k out of pocket.