What if you could own real estate without touching your savings? It might sound too good to be true, but in 2025, savvy investors are proving it’s possible and practical.
In today’s economy, real estate is one of the most reliable ways to generate passive income and build long-term wealth. However, many aspiring investors never get started because they believe they need tens of thousands of dollars for a down payment.
Can You Buy Investment Property With No Money Down?
Here’s the truth: you can buy an investment property with no money down if you know how to get creative with financing. From house hacking to seller financing, strategic partnerships to home equity leverage, this guide breaks down the most innovative ways to enter real estate with little or no cash out of pocket.
Why Traditional Down Payments Are a Barrier
Most lenders require 15% to 25% down on investment properties, which means you might need $45,000 to $75,000 upfront on a $300,000 home, not including closing costs, inspections, and reserves.
That’s a huge hurdle for most first-time investors. But by leveraging non-traditional financing methods, you can sidestep this cash barrier and start building your portfolio using other people’s money legally and effectively.
10 Proven Ways to Buy Investment Property With No Money Down
1. Convert Your Primary Residence Into a Rental
Already own a home? Turn it into a rental and move into a new one using low-down-payment loans like FHA or VA. You’ll keep your original property as a cash-flowing asset while gaining another one with minimal upfront cost. This strategy is compelling in rising markets where appreciation increases both equity and rental demand.
2. House Hacking With FHA or VA Loans
Buy a 2-4 unit multifamily home, live in one unit, and rent out the rest. FHA loans require as little as 3.5% down, and VA loans offer 0% down if you’re eligible. House hacking subsidizes your living costs and accelerates equity growth and landlord experience.
3. Tap Into Home Equity
If you own a home with built-up equity, you can pull cash out to fund a down payment or buy a property outright. HELOCs offer flexible access, while cash-out refinancing gives you a lump sum. This approach allows you to use dormant capital in your home to generate new income-producing assets.
4. Use the BR Method
Short for Buy, Rehab, Rent, Refinance, Repeat, this model helps you recover your initial investment quickly to reinvest it into your next deal. It’s ideal for distressed properties bought below market value. After refinancing, your capital returns, letting you scale fast without needing new funds.
5. Negotiate Seller Financing
Some sellers are willing to act as the bank, especially if they own the home outright. You negotiate terms directly, often skipping the traditional down payment. This method is excellent for off-market deals or inherited properties where the seller prefers long-term income over a lump sum.
6. Assume the Seller’s Mortgage
Take over an existing mortgage at its current rate and terms. This avoids today’s higher rates and sometimes allows entry with little to no upfront cost, depending on the seller’s equity. It’s a viable option if the property was purchased recently and the seller is highly motivated.
7. Partner With a Co-Borrower or Investor
Split the deal with someone who has capital. You contribute time, effort, or credit while they provide the cash. This is perfect if you’re rich in knowledge but light on funds. Co-investing agreements should clearly define responsibilities, profit splits, and exit plans.
8. Use Hard Money or Private Financing
It is ideal for flips or short-term holds. These loans are asset-based, meaning they care more about the deal than your credit. Some lenders offer 100% financing if the property has strong profit potential. Although expensive, they provide speed and access when conventional loans don’t fit.
9. Leverage Business Credit or LLC Financing
Establish an LLC and build business credit to qualify for business-purpose loans. These loans often consider the property’s income potential and your business profile rather than personal credit. This strategy separates personal and business risk and builds long-term credibility with commercial lenders.
10. Utilize Down Payment Assistance Programs
Look into local, state, or federal down payment assistance programs. Some regions offer grants or forgivable loans that can reduce or eliminate the need for a personal down payment on investment properties, particularly if they are owner-occupied. These programs are often overlooked and underused, but can be a game-changer for first-time buyers.
Comparison Table: No-Money-Down Investment Property Strategies
| Strategy | Down Payment Required | Best For | Main Advantage |
|---|---|---|---|
| Convert Primary Residence | 0–3.5% | Existing homeowners | Low-cost entry into first rental |
| House Hacking | 0–3.5% | First-time investors | Subsidized housing + cash flow |
| HELOC / Cash-Out Refinance | 0% (from equity) | Owners with equity | Unlocks capital without selling |
| BRRRR Method | Recyclable capital | Experienced renovators | Scalable strategy for rapid growth |
| Seller Financing | Negotiable | Direct deals with owners | No banks or underwriting needed |
| Mortgage Assumption | Low to none | Buyers with credit access | Retain favorable rates, avoid new loan costs |
| Co-Borrower or Investor Partner | Split or none | Networked investors | Leverage relationships instead of money |
| Hard Money or Private Lending | Low to none | Flippers, short-term holders | Fast approval and flexible terms |
| Business Credit / LLC Financing | Variable | Entrepreneurs and small firms | Keeps business and personal credit separate |
| Down Payment Assistance | Often $0 | First-time, owner-occupants | Grants or forgivable loans for multifamily units |
Pros and Risks of No-Money-Down Investing
Pros
- Low Barrier to Entry – Start investing with little cash
- Higher ROI Potential – Leverage boosts return on investment
- Faster Scaling – Reuse capital and expand faster
- Liquidity Flexibility – Keep cash for emergencies or improvements
Risks
- Higher Loan Costs – Interest rates may be steeper
- Negative Cash Flow – Poorly analyzed deals can eat profits
- Short-Term Payback Pressures – Especially with hard money
- Legal/Tax Complexities – More partners and lenders = more documentation
FAQs
1. Can I buy a rental property with no money down?
Yes! It requires creativity, the right partners or lenders, and flexible financing methods like seller financing, HELOCs, and government programs.
2. Do I need a good credit score to qualify?
It helps, but some methods, like hard money lending or partnerships, are more flexible. FHA/VA loans still require fair-to-good credit.
3. What is the BRRRR method, and does it work in 2025?
Absolutely. BRRRR is still effective in appreciating markets. Renovate, rent, refinance, and recycle your capital into more deals.
4. How do I find properties suitable for no-money-down deals?
Look for motivated sellers, distressed homes, off-market properties, or landlords ready to retire. Use tools like direct mail, driving for dollars, or networking at REI meetups.
5. Can I use these methods with commercial or multifamily properties?
Yes. Many strategies, especially partnerships, business credit, and seller financing, are tailor-made for commercial deals.
Conclusion
You don’t need deep pockets to break into real estate investing. What you need is the right strategy, the right partners, and the right mindset. With the 10 no-money-down techniques we’ve covered, from house hacking to seller financing, you can begin building wealth through real estate today.
In 2025, financial freedom isn’t about how much money you have. It’s about how creatively you use it.
Ready to Invest
Are you ready to realize your real estate ambitions without draining your savings?
At Trentium Capital, we specialize in helping new and experienced investors buy properties and provide construction, fix and flip, and bridge loans for your financial solution.
