Creative Ways to Buy Austin, TX Investment Property with Little Money Down

how to finance investment property with little money down

The phrase “buy investment property with no money down” is thrown around a lot. The truth is that “no money down” is very rare, and be wary of anyone who tells you differently. There are, however, creative ways to finance Austin, TX real estate investment property with very little money down. Let’s take a look:

  1. Live, then rent. With as little as 3.5% down, you can purchase a primary residence with the intention of keeping it as a rental in the future. The government allows investors to do this once every 12 months.
  2. Live, multi-family style. Buy a multi-family unit, such as a duplex, triplex, or fourplex, and live in one of the units while you rent the rest out. This strategy often leaves you with little to no house payment, and you may even be cash-flow positive when it’s said and done.
  3. Home Equity Lines of Credit (HELOCs). Often, the most flexible and cheapest way to borrow money is via a HELOC on your primary residence. And, while it’s a little more expensive, you can also obtain a HELOC on an investment property.
  4. Hard money and portfolio loans. Because hard money lenders aren’t bound by the same regulations as banks and traditional lenders, they can offer completely different terms and down payments based on their evaluation of you and the deal.
  5. Owner finance. If the homeowner owns the property free and clear, they can be your lender. The terms and payment plan can be whatever is mutually agreed upon.

While “no money down” real estate investing may be more of a myth, there are creative, legitimate ways to invest in Austin-area real estate for very little money down.

If you’re considering investing in Austin real estate but aren’t sure where to start, Sage Wilson Property Group can help. We understand real estate investing, and we’ve helped many investors build their property portfolio. Contact our knowledgeable team today or schedule a complimentary Investor Consultation by filling out the short form below:

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