Skip to Content

4 Alternative Funding Ideas to Start Your Real Estate Journey

Gresham Real Estate Investor Shaking Hands to Close a DealHave you ever dreamt about investing in single-family Gresham rental homes, but don’t have the money to do so? That’s not unusual. Luckily, there are many different ways to invest in rental real estate, even if you are a bit short on funds. In securing funding for an investment property with no cash, you might have to think outside the box. A few approaches are listed below as to how you can make your dream of owning rental real estate a reality, even when you don’t have all the money upfront.

1. Buy a Primary Residence

This may sound weird, but buying your own house first is a really good step towards rental property investment. Unlike loans for investment properties, there are many different programs designed to help first-time or other homebuyers purchase a home. Down payment requirements tend to be lower, and interest rates are often much more favorable for owner-occupied properties. Several rental property owners began by living in their own houses. After some time, they then convert it into a rental. This is a great starting point for building your very own investment portfolio.

2. Buy a Duplex

A duplex would also be a very nice first purchase. When buying a duplex, the same programs offered to owner-occupied properties are made available to you. Plus, you can rent out the other side of the duplex to someone else. The drawback, obviously, is that you have to share your own home with a renter. But the upside is that you will be collecting rent that may nearly cover your mortgage payment, reducing your living expenses and allowing you to save up for your next investment purchase.

3. Open a HELOC

If sharing a home with a renter doesn’t quite fit your needs, then you can go for a home equity line of credit (HELOC) on your residential property. As property values continue to rise, yours will, most likely, build up equity. You can then borrow against that amount in a line of credit so as to fund buying your next investment property. It’s possible too, that lenders will not give you more than 80% of your home’s value. So it’s wise to keep track of your property values so you can keep a close watch on your equity.

4. Reduce Closing Costs

If the down payment is already there but you’re short on other expenses, you can try to ask the seller or your lender to pay all or part of your closing costs. There are lenders out there who will offer rebates to try and minimize the cash needed for the closing. There are sellers who have even offered to handle the closing costs so as to seal the sale.

The dream of owning a portfolio of single-family rental homes is very much achievable for those who dare to put the work in. Our professional Gresham property managers can help! We work with rental property investors, from beginning to experienced, to help assess prospective rental properties, locate off-market deals, and offer expert advice on everything from rental rates to marketing (and beyond). Contact us online to learn more.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details