1st Rental Property - Kansas City

[Michael Hollingshead]

I have a basic question. How can I invest in a rental property in Kansas City without providing 20% down? This rental property will be my second mortgage, so a few lenders I have called thus far require 20% down. Do I have any other options? Hard money lenders, etc? 

[Dan Krupa]

@Michael Hollingshead have you looked at FHA? 3.5% down only. I know you said rental property but typically FHA only requires six to 12 months of time you live in a property to provide that loan. Potential house hack.

Also, a hard money lender is going to expect you to you to invest something. Especially if it is your first time working with them. They will want you to have some skin in the game, per se.  

Another option is your partner or do a JV with someone. They provide the money, you provide the sweat equity or may the deal/management etc...

Don't forget if you have a 401k you could roll it into a self directed 401k and borrow against yourself to provide that many. Many creative financing methods out there. Do some exploring on BP. Best of luck to you.