How to Buy a Rental Property with No Money? A Step-by-Step Guide

how to buy a rental property with no money
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Doing wonders in the real estate field requires a lot of experience, attentiveness, and guidance. Buying any kind of property is more than just an investment and trust me that it doesn’t demand a bag of cash in one go. There are multiple tips and tricks available in the finance world which will let you know how to buy a rental property with no money. Doesn’t it sound interesting? So, let’s go through the entire article to know what you should opt for and when you should implement the same. 

How to Buy a Rental Property with No Money?

1.House hacking

This term simply means that an individual has to buy or grab a multi-storied building and use the idea of shifting their own family to one floor and leaving the other floors for renting to tenants. In this way, you can live in a home that is your own and doesn’t need any monthly or annual payments to the landlords. 

how to buy a rental property with no money

Whereas on the other hand, your tenants will help you in paying the property mortgage by sharing their living rent as per their scheduled date. Even though the first step of this process is buying the property, it needs money which is effortlessly payable at that moment by getting a loan for a short period of time because in the end you will be benefitted enough to compensate for the same.  Getting an FHA loan is a golden chance while following this trick. 

2.Financial support from loved ones

Your good connections with known investors or family members can help you a lot in buying a rental property with no money. For this, all you need to do is pitch your money-lending issue in front of them and negotiate until a mutual decision comes. 

how to buy a rental property with no money

These friendly loans can benefit you in multiple ways like the least interest amount, zero closing costs, and easy payments too which add major convenience to lending money. The must to have factors in this form of money relations are trust, credibility, and a strong bond between you and the party. Lastly, make sure not to get fooled by anyone’s sugar coated words and make a detailed bond paper as soon as possible after sealing the deal. 

Read More: How to Spruce Up Your Rental Flat to Gain More Interest

3.Financing options by the sellers

There are a lot of cases when the house owner wants to sell the place as soon as possible. They wish for hustle-free and find a legit buyer for their property. The main reasons behind this nature of sellers can be witnessed in cases like when the property is a bit old, needs massive repairing, or the seller has an emergency of relocating. 

how to buy a rental property with no money

During these scenarios, the house owners finance the property from their own pocket in exchange for a loan agreement that is mutually finalized during the deal. From giving zero down payments to large interest rates, there can be multiple controllable factors on which you can negotiate and pitch. 

This trick is also very cost-effective as most of the time they eliminate the middleman or agents who take commissions for doing minimal work of finding buyers at a great cost.  

4.BRRRR Method

BRRRR actually relates to buying, repairing, renting, refinancing, and repeating. If you have the skills of financing the right property then you can get so much profit from this trick. This method will make you capable of investing more in other properties and places too. 

So, you need to start with finding a property that is old, needs urgent repairs, and has tons of renovation to do as soon as possible. Further, you need to discuss the prices with the property owner or seller. Make sure to negotiate or bargain at maximum because later on you have to invest in the same property for making it suitable for living. 

how to buy a rental property with no money

Once the deal is final, do your side of the investment in repairing the house which will take a few months but eventually lead to more after repair value. The main key point of this trick is to invest at least some equity in the original evaluation otherwise the change of before and after prices will not shock you even a bit. Lastly, sell the same property with higher profits to other buyers. It is one of the best ways to enter the real estate world with zero money. 

5. Find a partner

Having any co-renter or supporter who can finance the token money or down payment is a cherry on top. There are many people around us who want to invest in genuine and beneficial properties but do not have the time to do the fieldwork of traveling, searching, contacting, and negotiating. 

how to buy a rental property with no money

But if you can manage all that and convince the partner to help you financially as you did the legwork then you can effortlessly buy a rental property with no money. This method will give you more time to arrange your part of the payments for owning the property completely.  


Above you saw the easiest and most effective answers to how to buy a rental property with no money. Although there are a lot more options available when it comes to entering the real estate world with minimal savings. Some other ways can be making your primary house a rental house, following HELOC, trying leasing the property, or gap lending too which might help you in grabbing a desired property.

I hope now you have a complete idea about your next step towards renting a home with basic financing. If you still want any further assistance then connect with us through the comment box mentioned below. Happy Investing! 


Q1.How to Buy a Rental Property with No Money?

Ans:Some easiest and most effective options are finding a co-partner, HELOC, BRRRR, finance by seller, house hacking, lease, and more which can make you get your rental house with minor efforts.

Q2.What does BRRRR mean in the real estate world? 

Ans:BRRRR actually relates to buying, repairing, renting, refinancing, and repeating. This method will make you capable of investing more in other properties and places by following some steps of working. 

Q3. Can I really buy a rental property without spending my own money?

Ans: Yes, you can! Although it may sound too good to be true, there are several creative financing options available that can help you purchase a rental property without a substantial upfront payment.

Q4. What are some easy ways to buy a rental property with no money down?

Ans: You have options! Consider seller financing, where the property owner acts as the lender, or explore lease options, partnerships, private money lending, and government-backed loan programs like VA or USDA loans.

Q5. Are there any risks involved in buying a rental property with no money down?

Ans: It’s essential to be aware of potential risks. Some strategies may come with higher interest rates or stricter terms. Doing thorough research and seeking professional advice can help you navigate and minimize these risks.

Q6. How does seller financing work, and how can it benefit me?

Ans: Seller financing means the property owner finances your purchase directly, reducing the need for a traditional mortgage and a large down payment. It can be an excellent option for those with limited upfront funds.



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