Who Told You, You Need A 20% Down Payment To Buy Your First Investment Property?

They then asked me what is the minimum down payment required to buy an investment property?

My response was you need a 20% down payment.

On the 350k home they were looking at, that’s a 70k down payment without the closing costs.

I then started thinking many of our clients probably would like to buy an investment home in order to build their retirement nest egg.

However saving up a 20% down payment is not always easy. 

Here’s an idea you can implement.

What if you’re currently renting and you buy your first home. This requires between 3%-5% down payment plus your closing costs. Then you live in the home for 5 years always making on time mortgage Payments.

After 5 years you look to buy a new primary home which requires just another 5% down payment plus closing costs.

The existing home becomes your investment property and the new home purchase your primary.

In 5 years you were able to buy a primary and an investment with only 10% down payment between the two purchases. 

Of course you have to qualify for the second purchase but it’s a lot easier to save up 10% then 20%.

If you found this information to be helpful or if you have any questions my contact information is below. I would love helping you with purchasing your first home as well as your first investment property.

My name is Edgar DeJesus, I’m a licensed and local mortgage broker and branch manager for Treasure Coast Home Loans.

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Thank you for taking the time to watch this video and make it a great day.