I Started with Just $3,500: How I Bought My First Rental Property

about 2 months agoScore: 85
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Summary

This BiggerPockets article shares insights on how to buy a rental property with little to no money. Hosts can learn about strategies like down payment assistance programs, improving credit, and the importance of having financial reserves, which are vital when investing in real estate, especially for first-time investors.

Key Insights

  • The article highlights that it's possible to buy a rental property with very little savings, using strategies like house hacking and down payment assistance programs.
  • The article suggests having enough savings to cover the most expensive repair not covered by insurance. This could range from $3,000 for a condo mini split to much more for a property with expensive components.

Action Items

  • Research and utilize down payment assistance programs offered by local and state governments to help with buying your first property.
    Effort: low
    Impact: high
  • Build financial space in your budget, such as using interest-free credit cards, which requires great credit. This can help with initial investment costs.
    Effort: medium
    Impact: medium

Tools & Resources

  • Zillow: Zillow is starting to aggregate assistance programs based on your zip code.

Watch Out For

  • Not having enough cash reserves or financial space can lead to struggles with unexpected repairs or expenses, hindering your investment's success.

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