May 19, 2022

How to Buy Your First Rental Property with No Money Down

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Executive Properties Capital

How to Buy Your First Rental Property with No Money Down

If you’re new to the real estate investing world, don’t let the start-up cost deter you. Even if you have minimal savings, you can begin your real estate investment journey!

 

What are the different ways you can do this?

 

One of the ways is by house hacking – purchasing a small, two – four-unit complex. You can move in to one of the units and rent out the others, with the other tenants covering your mortgage and housing expenses with their rent payments. When you move out, you can keep it as a rental property, improving the cash flow. Youcould also assume the seller's mortgage, and make payments on their behalf.

Private loans are another option to consider when purchasing a rental property. This could be money from acquaintances, friends or family members. One of the benefits of this is that you can negotiate the terms of the loan that work for both of you, potentially allowing more flexibility for you.

 

However, we recommend using the Buy Renovate Rent Refinance (BRRR) method.

 

How does it work?

Let’s walk you through it, it’s relatively simple.

 

Buy

The first step is to purchase a property. This can be a home listed at below market value, or a fixer upper. Most lenders will finance 75% of a property's value, helping cover the majority of the start-up cost. Before purchasing, it’s important to take note of all the necessary details – purchase price, renovation budget, tenant payouts, refinance amount and paralegal fees to ensure that purchasing the property is a good financial move and within your budget.

 

 

 

Renovate

The next step is to fix up the property that you’ve purchased. Perhaps it has some cosmetic issues and needs a bit of an upgrade. Or, the renovations could be less aesthetic – maybe the property needs updated wiring and a new roof. Regardless, these issues need to be addressed, and in doing so you’ll significantly increase the property's value.

 

 

Rent

After finishing the necessary renovations, it’s time for an exciting step – putting your rental property on the market! Stage the property accordingly and take pictures of the rental. Once you have the applications, make sure you do your research. This means calling each potential tenant’s references and conducting credit checks to see if they would be a good fit for your property.

 

Refinance

After repairs and renovations are complete, you can refinance to a long-term mortgage. Ideally, investors should get back most or all of their original capital for the Next investment property. Then, repeat the process!

 

Essentially, you can get all your money back, plus a surplus!

 

Why work with us?

When you work with Executive Properties Capital, you’re choosing experience. We have 32 Joint Venture projects completed, ranging from triplexes to 45-unit apartment buildings. Regardless of the property size, our goal is to have 100% of the capital invested returned, and a surplus. Investing in real estate gave our founder, Adrian Pannozzo financial freedom. And, we’re sure that we can help do the same for you.

Contact us

We would love to help you get started on your real estate investment journey! Feel free to reach out to us at 416.938.2641, or by email at Adrian@investwithepc.com. You can also contact us through our website here: https://www.investwithepc.com/contact-us.

We look forward to hearing from you!

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