How to Invest in Real Estate with Little or No Money Down

Can you invest in real estate with no money down? Yes! Will it require flexibility?! Absolutely. Let me give you a tactic you can use- if you’re willing to move!

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.

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