Then you can use the gift of your parents money to buy your first rental and start saving from your first job for your down payment on the second rental.

Our option is to use my Dad’s money, kind of make it as a gift for us but the lender we are working with said that funds from family is not allowed to use for investment.

That being said, this loan option allows for you to put down as little as 10% for the downpayment and allows for 5% to be gifted.

the reason why they want to gift it instead of selling it to me is to avoid capital gains tax. 

We are considering her withdrawals by the money and gifting it to me to add to the reserves.

Originally posted by @Zachary Dooley: The #s came out great at the endThen be happy you got a good deal, offer an extra $1k to the seller to make the lender required repairs, and close on it.Also send your Realtor a very nice thank you card and gift card so he can take his family out to dinner.

Right now i have a very good credit score in the 700s but very little capital to invest with and I doubt family / friends would or even can afford to loan/gift capital.

My goal is to continue to find passive real estate options to become financially independent as well as become more philanthropic. 

So if you can save or have gifted the required 3.5% down on your next property then do everything you can down that route. 

Once we've fluffed the house a bit, we will refi, pay off the HELOC, and go around again.All of the delayed financing options I've found specifically state that any cash from a third-party must be a gift, and you absolutely cannot use the proceeds to pay off a private loan for the original purchase.