.- There is no discount or created equity over and above the amount that is used as the down payment for the home.- The management company charges a management fee of 10% - 15% which can be a little higher than average property management companies, but that cost may be offset by higher quality of services.- The management company also charges for other services such as fee for coordinating maintenance and repairs, and turnover and releasing.

If you want to buy your first property ASAP, house hacking (duplex, triplex, or renting extra rooms) is one of the best ways to start with a low down payment while learning property management.

@Duarte MarquesPossibly but highly not recommendedFor those with no real estate experience or experience in taking on debt, it’s not easyTo do it also with little to no down payment or reserves in most occasions will end in disasterReminds me of when in high school a friend used to let his dog drive his car.

What kind of account or vehicle would you suggest to start saving down payment money for my first rental property?

Know that every long term lender will require a survey and if something comes up on it when you are trying to sell or refi, you could get stuck in hard money without an easy or quick way to get out.Is there a pre-payment penalty?

I’m a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments.

So you can scale that if you want.FHA is for people with poor credit and very little down payment.

I wouldn't worry about the $1000 payment.

The maximum fixed-rate period seems to be seven years, and there is generally a balloon payment at 10 or 15 years.

And how much of a down payment do you have available to invest in the property?