My personal residence currently has right at 20% equity in it.

I reside in Pensacola, Fl.

At first this house will be my residence, but will eventually be turned for a profit.

ok, i want to make this short but it might run on.i re-fied my primary residence and took about $100K out.i just offered to buy my first rental and the seller accepted my offer.the offer the seller accepted goes like this.purchase price--$265K20% down--$53Kseller pays $7,950 in closing costs.i want to go with a no doc, conventional investment loan.814/804/787 are my tri-merge credit scores.one loan officer is telling me he can get me 6.5% interest only conventional investor financing with 20% down-no doc's, but i have to come with $2,000 out of pocket.

I got one from Countrywide, but mind you it was my primary residence at the time.

Perhaps you are referring to the listing Realtor and not someone who you hired to help you find a home.The problem from a conventional financing standpoint is that you have multiple residences on one legal description which makes this a multi-family property beyond the "normal" 1-4 unit residences acceptable to conventional lenders. 2)What is typically done to avoid making a down-payment and/or paying closing costs.If you are asking specific to this property, there probably is no 100% financing option available so you may have to pass on this one.Generally speaking there are many programs for little or no down-payment and you should be talking to a mortgage lender about what you can afford and qualify for prior to looking at homes.As for closing costs, you may qualify for city or county down-payment assistance programs (which are more typically used for closing costs instead of down-payment).

After much reading and research, I choose this type of investment for several reasons, not the least of which being it is what I can best afford; vacancies shouldn't be a big problem since its a high rental area; its a low income area, so if I find a sound building, I won't need to spend a lot on improvements to attract tenants (since the tenants wouldn't be able to afford to pay for those rental extras anyway).I'm doing the deal with "no money down-ish" by tapping the equity in my personal residence (HELOC, rate is prime, no margin, 15 year term) for the down payment, and financing the rest at 90% with a conventional 30 yr, 7.75%.

I am working with the agent through whom I bought my residence 12 years ago.

Purchase as a primary residence and move into one of the units and rent the others out.

It’s just a huge headache and one that I don’t want to deal with.There is another way that not only helps people get into houses and allows for easier qualifying at the end of the term, to buy a house; it allows the resident (renters) to just get a refinance instead of a new loan.