Getting going in real estate investing in San Antonio doesn’t require you to have hundreds of thousands in savings. When I first started investing in San Antonio in under market value homes, I didn’t have much of my own cash. I was able to find sources of funding so that I could buy 50 houses in my first year.
Here are some of the best, simple ways to fund your first few deals with limited cash:
#1 Buy San Antonio Property with FHA Loan
If you are buying your first San Antonio investment property, consider buying one with an FHA loan and putting down 3.5%. A classic way to get started is to buy a two or four unit multifamily property and live in one of the apartments while renting out the others.
I never did this myself, but there is a certain logic in living rent free in your own property while enjoying rental income from the other units.
#2 Hard Money Loans
You can use hard money for a few months to flip a property. Or, consider using the hard money loan so that you can rehab an under market value property, and then get a conventional loan on the property and rent it out.
Hard money loans carry high interests rates of 12-15% and don’t make sense over the long term. But it works fine for a flip, or for holding for a few months until you can get a conventional loan on the property.
#3 Mortgages from Non-Bank Entities
Some people have had trouble qualifying for mortgages in recennt years, and companies such as SoFi and Lending Home online are offering more mortgages. Many loans can be closed in as little as two weeks, and some of them will fund 100% of the purchase.
#4 Asset-Based Mortgage
There are companies today that will loan you money for a mortgage on a San Antonio investment property just based upon the income that the property will produce. One of them is B2R Finance.
Because the loans are based upon the rental income that the property will make, it is a good choice if you are just starting out in San Antonio real estate investing.