Most of us have heard stories of people buying houses with low and no money down. How could that be? In the end, is that some sort of scam? How could you buy something without paying for it?
This is what I love about Real Estate. With education and an open mind to learn. You could utilize different tools available to be able to own a piece of the American Dream at fraction of the cost.
The easiest way to buy a house with no and low money down is the FHA 3% down available only to 1st time home buyer. But we won’t talk about it here.
The 2nd easiest way is with down payment assistance. You could google down payment assistance program and get in touch with your agent or mortgage professional to see if you qualified. we won’t talk about it here either!
Since you guys are all investors, I want to share with you what I personally did for my house. It was a distress sale that I was able to pick up for $150,000 on the MLS. The house is in need of repair and I have to put $30,000 worth of rehab into it.
After everything said and done, we decided to move out of out old house, rent it out, and moved into this one and do a cashout refinanced out to pull the cash out. Since we did our number correctly, the house appraised at $215,000 and we were able to pull most of our cash out, and locked down a 30 years mortgage at 3.75% interest rate! We then move the fund to other types of investment to generate an even higher return. Since the house situated the area with super low tax and no HOA. the PITI came out to be less than a $1000, which is cheaper than most of the decent 3 bedrooms apartment that I know of around Houston.
Just some pictures we took during the process
During the rehab
The Bathroom layout before
And after some TLC