Financing and Exit Strategies MatterMany house hackers use FHA or low-down-payment conventional loans.

If you're house-hacking, you can put down as little as 5% (or even 3.5% for an FHA loan).

Quote from @Kate McDevitt: I agree with Chris, get a loan for rehab..

Loan had high terms of 9.5% calculated to 20 years and a balloon payment on the 3rd year coming up this April 1st.

Quote from @Leonard La Rocca III: So is it common to find a conventional loan without meeting the lender in-person?

A particular strategy that may help you is to assume VA loans.  

My point being, all things constant, I usually see an appreciation of about 1-3% in addition to the loan being paid down creating equity.

This allows you to spread your investment risk and potentially earn passive income from real estate without dealing with property management.Private Lending or Hard Money Loans: If you're open to lending your money, you could offer private loans or hard money loans to real estate investors.

Buy box: Location: Approx. 30 min drive to Boston Heights, for workNeighborhoods: Decent walkability score - not far from shops/restaurants/trendy neighborhoodsIdeal tenants: Close to hospitals/universities/schools for professionals/students/familiesBudget: $175-250K - Buying w/conventional loan, 5% down/ approx 20K reno.Property type: MFH 2-4 units - preferably side-by-side, with a yard we can fence for our dogUnits: 3+/1+ - better if 1.5/2 bath per unitTimeline: Plan to live there for 2 years, but possibly only 1 year if we find another investment opportunityGoal: Focus on appreciation - would like to see cash flow in year 2-3 (the year we move out), including overhead (Vacancies, Maintenance, Utilities) and budgeting in PM if eventually we don't manage ourselvesValue add: Opportunity for some forced appreciation, but not a full reno - cosmetic upgrades and updating kitchens/baths while we live in one unit.

From a financial perspective, the numbers look attractive—many of these properties show a Cap Rate of 6%–8% or more, which is quite decent.For example, if a Dollar Store property is listed at $1.2 million with an average Net Operating Income (NOI) of $90,000 per year, financing 50% with a 6.5% APR, loan would still result in positive cash flow from day one.