Can I buy investment property with little money down?

The traditional picture: Traditional investment loans often require 15 to 25% down, because lenders treat investment properties as riskier than owner-occupied homes and price that risk into the down payment. For a first investor, that can feel like a high wall. But the wall has a well-known door, and it is built into the way you buy the first property.

House hacking, explained: House hacking means buying a multi-family property, living in one unit, and renting the others. Because you live there, the property is financed as owner-occupied, which opens the door to low-down-payment owner-occupied financing that is not available on a pure investment purchase. The tenants' rent then offsets your housing costs, sometimes covering most or all of the mortgage, while you build equity in a property that is already producing income.

How owner-occupied financing changes the math: The same property, financed as owner-occupied instead of investment, can require a meaningfully smaller down payment, which changes the whole entry math for a first investor. That is the core of house hacking: using your own housing need as the financing strategy. The trade-off is that you genuinely live there, usually for at least the first year or two, in the same building as your tenants. It is a lifestyle choice as much as a financial one.

What to evaluate first: Before buying, evaluate the location and its rental demand, the condition of all the units, the realistic rent you can charge, and how you will manage the property and the tenants. A multi-family that looks cheap on paper can become expensive if rents do not cover the carrying costs or the property needs constant attention. Run the numbers conservatively: assume vacancies, maintenance, and management, and make sure the property still works.

Next steps: If house hacking sounds like a fit, start with a lender conversation about owner-occupied multi-family financing, then tour the multi-family properties in the communities where you would actually want to live on both sides of the river. We can help you evaluate the neighborhoods, the buildings, and the rent numbers so your first investment is also a home you are happy to live in.