How to cover a 20% down payment when you have no money?

[Dillon Francis]

My girlfriend and I are looking to purchase our first house in the next six months. I want to purchase a duplex and rent out the other unit, or a large single-family home and rent out rooms/basement (1st option preferred). We are saving towards a 3.5% down payment (roughly $10,000 for the market and homes I am looking at), considering we get an FHA loan. However, I want to keep expanding my portfolio and eventually purchase a separate rental investment property in the area, so that I can also manage it. I do not want to wait until we have saved up a 20% down payment (about $60,000) for a conventional loan, so I am wondering if anyone has advice on how to get that 20% DP covered with other funds besides our own. I am aware that hard money could be an option, but with the shorter terms on those types of loans, I don't feel confident that I could pay that back in time (on top of the mortgage) with the only source of income from that property being the monthly cash flow. Is this idea possible without BRRRRing the property? (So far I have not been able to find great deals worth BRRRRing in the area).

[Eric James]

Nobody wants to wait until we have saved money before we buy real estate. People who try to take short cuts usually get into big problems.