• Grant Dean

How can I invest in real estate if I don't have much money? Part 3

Here is the real advantage of taking this path and implementing this type of strategy – it’s costs less money to get started. The down payment on an owner-occupied home will be between 3.5-5% not 20%. On a 250K home that’s an immediate min savings of $37,500 (not including closing costs). While you live in the home as your primary residence, not only will you pay less in taxes (tax increase is capped at 10% per year due to homestead exemption), you will have time to slowly make the necessary repairs or improvements that will attract a tenant as your budget permits. After a couple years you find your next property, market your home for lease, go under contract on both properties and close. Most lenders will be able to use the projected income of your “rental property” as your income if you have a signed lease (even if the tenant hasn't occupied yet). The timing of your tenant moving in and you moving out of course will take some preparation, but it can be done. Now you own a rental property and have added real estate to your investment portfolio. If you want to learn more call me and together, we’ll get a game plan. #realestateinvesting #Austinrealestate #buyandhold

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