New investors alert

[Chris Kendrick]

Ok for first time new investors, i  went to multiple of banks and there is no such thing as no money down or 3 or 5 percent low down payments, its normal 20 or 25 percent down, so only way i see to profit from rental or investment properties is either flip or do the brrrr method , cause you cant put a down payment of 20k,30k or 40 or 50k, cause it will take you forever to get that money back if your only cash flowing around $300 or $400 a month, you cant buy a property every 7 or 10 years doing the conventional method of buying a house, so you almost got to rehab the house and either flip or get it appraised for more and cash refi to get your money back and rent it out, i dont know how everyone making money, please dont say seller finace, cause that dont exist

[Alex L.]

Quote from @Chris Kendrick:

Quote from @Alex L.:

Quote from @Chris Kendrick:

Quote from @Alex L.:

Quote from @Chris Kendrick:

Quote from @Alex L.:

3-5% down is only available for owner-occupied home loans. You can house hack with this, or purchase the home and live in it for a year, then convert it to a rental. 

Regardless, I think you need to do a bit more reading before diving in. Most people aren't waiting to recoup their down payment from rents to purchase another property. You either need to use your own earned income, or utilize creative financing.

Yes no one is going to wait to get there money back, most people who own there own home cant house hack, most sellers will not do seller finace, so not much options left other than brrrr or flip the house

I mean, you don't necessarily have to BRRRR or flip to generate an income. There's always the straight-forward option of just... using your own income from your W2 to cover down-payments on investment properties. Obviously this is more ideal for people who are able to stash away a good amount of savings each month after expenses, but it's a very simple and common method.

True But not scalable,  idea is not to buy 1 house every 5 to 7 years, 

 It's only not scalable if you're not making enough income. I could purchase 1-5 houses per year using mine and my partner's own income from our W2s as what would be down-payments or even buying them outright if we wanted to. You just need to look at things differently and see how you can get from Point A to Point B by doing something else.

But how your going to get your money back, 

so your saying you got to make alot of money, gotcha

Depends on what you consider to be a lot of money. We net ~123k/year together from our W2s and are able to save ~42% of that per year by being frugal and living below our means in a LOCL area. These savings have been used for down-payments several times. And as for "How do you get your money back," the same way you get your money back by investing in dividend stocks. Properties are investments, so we look at them as a way to park our money, and then we receive dividends in the form of rent... and then they may also appreciate, and we'll see those realized gains if and when we sell. We did not always make this kind of money -- my first job was as a cashier and theirs was as a dish washer -- but we bettered ourselves and aimed for better opportunities through a mix of school and simple desire. They went to a coding boot camp and now work in IT, and I searched high and low for some sort of job that wouldn't make me tear my hair out and landed in the finance world. Note, this is all within the span of the last 8-10 years.

It seems like you're more interested in acquiring a property and turning an immediate profit with none of your own money invested at all. While it's not necessary impossible, the only way you'd be able to do that is through BRRRR, and even then most investors end up having a little bit of their own money still left in the deal. Regardless, I have several properties that I've BRRRR'd and many of them left me with $0 of my own money in, meaning I'm generating pure profit from the first month of renting... however, that's going to take cold hard cash or risk through creative financing to buy and rehab the place. Depending on where you're investing, that'll be a lot more than $20-50k.