This is going to be my first property I am purchasing and I am looking to house hack by buying a multi-family with 5% down. 

We currently own a home and are leveraging off that asset to purchase the rental. 

I am purchasing a 20 unit building in socal.

Purchase price: $99,000 Cash invested: $350,000 This is a fantastic multi family opportunity I sold my main contractor that came with stamped and approving plans and permits to build a new construction triplex in the heart of Temple.

Purchase price is 1 million.

As the population continues to grow and more high income earners move here to work at Toyota, Boom, etc. the average purchase price will continue to rise making it even more difficult for first time buyers to break into the market.

But note investing definitely works, if anyone is looking to get into it.My best deal was purchased for $13k and generated about $170k.

Here are the numbers, so you can see what I mean.The numbers are the following: 359,900.00 sales price (purchased Dec 2015) 89,975.00 down payment (25%) 10,000.00 closing cost (estimate - I don’t remember the exact figure) 7,000.00 required rehab (estimate - I don’t remember the exact figure) 106,975.00 Cash invested 3,900.00 Rental Income (actual figures) 150.00 Parking Income (actual figures) 4,050.00 Total Inflows (400.00) Utilities (250.00) repair budget (not an actual outflow, yet) (2,200.00) Mortgage (Includes insurance, taxes, and P&I) 1,200.00 Operating Inflows 14,400.00 Yearly inflow 13.46% ROI If I were to use the 50% rule I would have discarded the property. 

For $150,000, this could be $3,000 to $7,500.Investing in a Rental Property: Costs and ExpensesDown Payment and Closing Costs:Down Payment: Assuming you buy a $300,000 rental property, you need a 20% down payment ($60,000).Closing Costs: Typically 2% to 5% of the purchase price.

I've recently came across this technique of assuming the sellers mortgage when purchasing the house.