Ways for Home Buyers to Get Started in Real Estate Investing

Hello Hampton Roads,

Owning rental properties can be a great way to grow your cash flow and fund your retirement.  If you are in the market to buy a home, there are ways to get started in real estate investing right away! Many options exists for both owner occupants and non-owner occupants.   It's never too early to start whether you are a first time home buyer or not,  here are a few tips on getting started!

For home buyers who intend on living in the investment property they purchase, there are several ways to get your feet wet:

  • Tip#1  Purchase a multi-unit property up to 4 units and live in one unit and rent out the rest 
  • Tip#2  Purchase a single family home with an in-law suite and rent that out.  
  • Tip#3  Consider short-term AirBNB rentals and make your home available to coincide with popular events in your area.

Purchasing a home focusing on cash flow, turns your personal residence into a productive asset that pays you to live in it.  By living in the home, you can qualify for a low interest rate and low down payment home loan and if you are a first time home buyer, there are down payment assistance and grant programs which you may be able to use.

Another good thing about being a owner occupant buyer, is that you typically get first dibs on some of the best investment properties out there from banks and government owned homes.  The owner occupancy period restricts investors from bidding during this period and allows owner occupants to bid without investor competition.  These distressed properties are sold "AS IS" and can be had at attractive prices by buyers who aren't afraid to do some work. 

For home buyers who do not intend on living in the investment property, the challenge is coming up with the down payment as investor loans have higher requirements. For a single family home, Fannie Mae and Freddie Mac require 15% down and for multi-family properties, the requirement is 25% down. Putting between 15%-25% down for multiple properties is capital intensive and can work well with properties with equity but for those that don't have this to put down, here are some ideas that may help:

  • Tip#1  If you purchase a property that is at least 50 miles away from your principal residence, it may be able to qualify as a 2nd home and thus provide the advantage of a lower interest rate and down payment.
  • Tip#2  Joint Venture and share the equtiy with a partner. Both parties contribute towards the down payment with the partner providing most of the money and the home loan covering the balance.
  • Tip#3:  If the seller is motivated and amenable you can ask for seller financing and make your offer attractive by providing security and collateral.

If your curiousity has been piqued and you want to learn more and also find out what kind of investment deals are available in Hampton Roads today, sign up for a FREE List of Foreclosure Properties. and email me to get started!

Thanks for Reading,


Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+


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