Rental purchase financing

[David Lewis]

Hello,

I found a duplex I'd love to purchase, however, I'm having difficulty coming up with the 20% down most lenders require for an investment property.  My credit is excellent, I just don't have the down payment funds currently.  Any ideas to overcome this barrier?

Thank you!!

[Josh Kredit-Phelps]

First spot I would look is at any equity you may have in your home if you have any. 

Second, think about your 401k. You will pay yourself on the interest plus rental property has many more benefits and generally speaking better returns than the market over a longer period of time

Third, you could always ask for owner financing. This is definitely pending the situation they are in. Usually a small down payment and favorable terms then refi out in 5ish years. 

Fourth, don’t be afraid to ask a friend. That’s what I did and my buddy and I now own 9 units collectively. They could also get the money out of their 401k or any current equity in their personal home

Let me know if you have any questions and good luck!