How to Buy a Rental Property with 5% Down (Sneaky Tactic)

Missed about 24 months of equity😂

Just do the DSCR loan

The first problem is buying an $500,000

Can't imagine how many people are going to try this and find out the harsh realities of zoning laws, permitting, etc. Not to mention getting blacklisted for trying to bail before FHA loan has seasoned.

Who wants to move every year. That's don't make sense also debit to income to get these properties don't conventional go in your name and not an LLC?

Yeah but the problem is what happens when you have no tenants to pay the rent?

Ok so what about PMI?

I have like $200k in equity in my house right now, after my tenants move out this coming April, any suggestions on the best way to invest? With the DSCR loan option or FHA or Conventional?
and are TurnKey rentals a good investment to get into? They are all set with tenants ready to go...idk any recommendations thanks!

That might be in the US. Here in New Zealand you need 20% for a residential property and up to 50% for investment property.
The cheapest house in the country is 350k and salaries $60k a year.

Or whatever the numbers are, lol.

I’ve done a couple rentals this way and I Don’t like this video for a couple reasons.
Leverage is high
No mention of PMI
It’s mortgage fraud if you lie to the lender about your intentions.
Importance of heavy cash reserves, especially in todays market.

I was told, we need to pay taxes on rental income before mortgage payments. Might end up losing money here

What happens if you dont really move into it ?

What if I’m not in a position to live in one of the units (young kids/family and I’m investing out of state) if a multi-unit investment house? Is there any way I can still take advantage of the 5% down. What are the terms for “living in the residue se”? What if I just keep one of the units unoccupied for when I’m in town?

Hi David, Been watching and listening for a long time. Can you do a detailed episode on 1031 exchanges. Pros, cons. and all the nitty gritty details and ins and outs. how you 1031 into a new build ie Lennar or DR horton build. what if you 1031 down instead of the usual up (as in 1031 to getting more units and bigger deals). it would be great with a lot of examples too. Thank you!

In Explore the nuances of real estate investing and uncover the secrets to wealth creation

What’s best and cheapest out of pocket financing to buy land and build a house to either live or not in it with one or two ADU’s?

Hello all , does this work on new build 4 plex as well??

Adding a dwelling unit is not a ordinary thing to do.... zoning laws wont allow you to do that. He's talking about a unicorn.... that's not the common find. I agree with him on putting that $ into improving them.

This video has to be a joke right?

I’m 18 wanting to buy a house as a rental but live in it for a few years any tips this would be my first time buying a house/rental

Incredible... Thank you.

Half way through still no real info

“ virtually”:( which means mostly not) guaranteed. As long as ( which means that your miles may be zero) right locations….. are locations defined ?

“ I’ve got my partner”…. Is this actually a day to day biz partner… or a mortgage broker that paid to get on the interview?

Yes my comments are not happy ones…
The market is absolutely FULL…SATURATED…. With sharks.
I was taught… AFTER …ALL.ALLL.ALLLLL. COSTS… INCLUDING REHAB COSTS.. IF you don’t see 20% equity ..IN…THE…DEAL…it isn’t a whole sale deal… it’s a retail deal..period.

$100,000 out of pocket… or $25,000 out of pocket…. NET Cash flowing WHAT $300/ month..
Do the math… you break even / get your out of pocket cash back in what 4 million light years?
Oh no… let’s refi when the property appreciates….
NONE. Of the mature investors factor appreciation in.. 3%/ year…6%/year … no mature investor counts this.
So you.. BRRRRRRRRRRRR…. when in x years… sure only if the property has appreci…. Ooops there’s that word again..
So now you have a property with how much equity ?…. And you’re going to take the cash out to buy another property and just dig your hole deeper.

I was a Short Sale Processor for one of the big banks….
You’re already on my list

never actually get to HOW to buy the investment property only 5% down............

Putting less than 20% youre not making shit for cashflow

What about those who are already living in their primary residence?

One thing they should address is the significantly higher mortgage payment when you put 5% down. If you have a high mortgage and still have to pay to renovate the house, it is very possible your expenses will exceed your income (if you are a moderate wage earner). Also, if you turn a single family into a multi-family you will pay more in property taxes. When you do end up renting it out, if the rent(s) don’t exceed the costs (mortgage, vacancy, cap ex, shared utilities etc) you may still be coming out of pocket after you move.

My point: this approach is conceptual, you must run the realistic numbers to see if it will make sense.

My question is can you keep the mortgage on your first house hack as 30 year 5% down? Or do you have to then transfer that loan into a commercial loan, which would then force you to come out with money for the higher down payment.

Dude! Mind. Blown. I love my veggies!!!

Do lenders go after you for a 3% down-payment and not living at the property?

How does the government or bank know whether you're living in it or not?

Can this be done if you already have a primary residence with a 30 year mortgage? How can it still be done?

Did he just say 6-7% interest is a historical low?🧐

Hi Do you use people good credit score to apply loan for investment property. Or recommend me who does.

I talked to a realtor and they told me you cant get a down payment under 15%? What am I missing?

haha like everyone enjoys having tenants sitting at your doorstep. Might be fun for young people getting started, not for anyone else sorry last thing I want is to be living next to tenants.

Why not just use the Fannie mae loan

Does the bank in the US allow you to use rent to cover your mortgage fully if the rent covers the monthly mortgage payment? the reason i ask this is because in canada, even if the rent covers the monthly mortgage payment, the bank will only give you about ~1/3 of the mortgage, the rest will need to be covered by your salary. so keep buying property and renting out become extreme difficult.

You know I'm doing this already on my primary residence. No one is talking about insurance! You have a regular HO-3 insurance policy so what if the insurance company does a search on the web of your property and finds out you are advertising your residence for rental? I know I know you can do what you want with your rooms in the house, but can the mortgage company call your loan? Can the insurance company cancel your policy if they find out you're renting the rooms out? Mine almost did when I inquired into it and I said I wasn't doing it just thinking about it. There is no liability if the roommates/renters or their guests get hurt on your property and the insurance may not pay out if you didn't tell them you were renting. It's a risk guys,.....but it's worth it.

Only problem is if you’re forced to live in an area (baby mama) which is so incredibly overvalued that you can’t make anything cash flow 😅

Is this possible even with a 11 million dollar property ?

I have a family and want to get in RE investing but how do I get away with the requirement though. I live in my primary currently and want how to buy another one to move in and rent out the current property. Approved for conventional, they want my next house to be same or more size such as # of bedrooms, bath, and sf. This is a big obstacle that stop me from finding a match or bigger property with my price range. Thoughts?

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

If you purchase a property 5% down with a convention loan (Owner Occupied) and then live in it for 2.5 years. During that time, you make improvements to the residence then buy another owner-occupied residence does the first residence have to be refinanced into an investment mortgage? If so, wouldn't that property than require 20% down on the loan?

great strategy but concerned how does this play with a family (wife and kids). Not sure my wife wants to move from houses every year or live in a MFH unit. Can this be used for SFH?

I don't see why this can't work on turn key houses lol