Step 1: Buy a move-in ready home with a no-money down loan. (I say move-in ready so that you limit your expenses here in Step 1 and don’t have to worry about updates or repairs).
Step 2: Live there for one year.
Step 3: Move out and buy another home (you will likely qualify for either a 3.5% money down or 5% money down loan) and RENT OUT the home you bought in Step 1!
Step 4: You’ll report what your tenant gives you each year in your taxes. Once that’s been recorded in your taxes for one year, it can be considered income.
Step 5: Utilizing the income from your rental, either move into yet ANOTHER home at 3.5% or 5% down to rent out Home Number 2 OR use an alternative loan to stay in your house from Step 3 and buy another home. There are options that require only 10% down at this stage and you’ll be able to rent out the new house from day one!
Not liking this method? Another option is to buy a two-plex or four-plex utilizing a no-money down loan. Live in one of the units and then rent out the remainder of the units.
Do you have specific questions? Curious how to make this a reality? ASK ME! This is LITERALLY the plan my husband and I followed to begin investing into homes and renting them out! I’m always available for questions.