How Can You Buy an Investment Property With No Money Down in 2025?

Buying an investment property with no money down can seem a little unrealistic, but it’s actually very doable. Lots of people have done it, and so can you. Whether you’re new to real estate or already know your way around, there’s always a way to secure a property without forking over a ton of money upfront. As the market keeps changing, these strategies are becoming even more valuable in 2025. Skipping the usual down payment means you can save cash for other expenses or just build your income streams faster. Things like house hacking for beginners, owner financing options, or hard-money loans for rentals make it possible to own Investment Property With No Money Down and draining your savings.

#1. House Hacking—A Simple Starting Point

House hacking is one of the easiest ways to get into real estate with very little money. Here’s how it works. You buy a duplex, triplex, or four-unit building, live in one of the units, and rent out the others. The rent from the tenants can help cover your mortgage—maybe even all of it, depending on the rent rates.

If you qualify for an FHA loan, the down payment can be as low as 3.5%. And if you’re a veteran, VA loans let you skip the down payment entirely. It’s a smart way to start owning property without putting yourself under financial strain.

#2. Using Home Equity for Real Estate Investment

If you already own a home, you’ve got a great tool at your disposal: equity. That’s the difference between your home’s value and what you owe on it. You can tap into this equity to buy an investment property with no money down. Here’s how:

Home Equity Loan

A home equity loan lets you unlock the value of your home by borrowing a fixed amount as a lump sum. You can use this money to invest in another property, whether it’s for rental income or flipping opportunities. These loans come with predictable monthly payments, which makes budgeting easier. If you have significant equity built up in your home, this is one of the most straightforward ways to fund an investment property with no money down. It’s important to ensure you have a solid repayment plan to avoid financial strain.

HELOC (Home Equity Line of Credit)

A home equity line of credit (HELOC) is a flexible option that works like a credit card. Instead of receiving a lump sum, you can borrow money as needed within a set limit based on your home’s equity. This approach is ideal for covering unexpected costs or renovation expenses on an investment property. It allows you to only pay interest on the amount you borrow, making it a versatile choice for ongoing projects. A HELOC is particularly helpful for those who want to maintain cash flow while pursuing real estate opportunities.

Cash-Out Refinance

With a cash-out refinance, you replace your current mortgage with a new, larger loan. The difference between the old and new mortgage amounts is given to you as cash, which can be used to buy an investment property with no money down. This method works well for homeowners who have significant equity and want to access it for additional investments. However, keep in mind that refinancing resets your loan term and may result in higher monthly payments. It’s crucial to calculate whether the potential returns from your investment outweigh these costs.

Using home equity means you’re leveraging what you already own to expand your portfolio. It’s like putting your existing property to work for you.

#3. Taking Over an Assumable Mortgage Loan

An assumable mortgage loan is another option if you’re looking for something less conventional. This lets you take over the seller’s current mortgage with its existing terms. If the seller’s loan has a low interest rate, this can save you a lot of money.

It’s not always straightforward—you’ll need lender approval, and you’ll usually have to pay the difference between the mortgage balance and the sale price. But it’s a solid choice for buyers who want to avoid higher interest rates.

Steps to Secure an Assumable Mortgage

To take over an assumable mortgage, you’ll need to follow specific steps. First, identify a property with a mortgage that’s assumable. Then, negotiate with the seller and apply for lender approval to ensure you meet their qualifications. Finally, arrange to pay the difference between the sale price and the mortgage balance, either through savings or creative financing options. This process can be complex but offers significant savings in the long run.

#4. Owner Financing—A Direct Path to Ownership

Owner financing options skip the traditional bank process entirely. Instead, the seller acts as the lender, letting you make payments directly to them. This is particularly useful when the seller owns the property outright and wants to sell quickly.

Terms are often flexible and can include little or no down payment. It’s a win-win: the seller moves their property faster, and you get easier access to ownership.

Benefits of Owner Financing

Owner financing offers several advantages, including the potential for lower upfront costs and a faster closing process. Because there are no banks involved, the approval process is more flexible, often accommodating buyers with limited credit history. Additionally, the terms can be customized to suit both parties, creating a win-win scenario. This method is ideal for buyers seeking investment property with no money down who value flexibility and speed in their transactions.

#5. Partner Up for Shared Success

Sometimes, it’s better to team up. Partnering with someone who has the cash or credit you lack can help you buy an investment property with no money down. You’ll share the costs, risks, and profits.

For instance, maybe you’re good with property management but short on funds, while your partner has the money but no time. Together, you’re a complete team. Just make sure to have clear agreements on how responsibilities and profits are split.

#6. Hard-Money Loans for Rentals

If traditional financing isn’t an option, hard-money loans for rentals might be the way to go. These are short-term loans provided by private lenders, focusing on the property’s value instead of your credit score.

They’re great for buying fixer-uppers or securing quick deals. But be cautious: interest rates are high, and repayment terms are short. Make sure you have a solid plan to flip or refinance the property quickly.

#7. Rent-to-Own Agreements

A rent-to-own setup is another way to step into property ownership. You lease a property and agree to buy it later. Part of your rent payments goes toward the purchase price, which makes this a great option for people who need time to save or improve their credit.

These deals are flexible and can be customized to suit your financial situation, giving you a clear path to eventual ownership without a big upfront cost.

#8. BRRRR Method for Portfolio Growth

The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is a favorite among experienced investors. Here’s how it works:

1. Buy a distressed property with short-term financing.
2. Renovate it to increase its value.
3. Rent it out to generate income.
4. Refinance to pull out equity.
5. Use that equity to fund your next investment.

By repeating this cycle, you can continuously grow your portfolio without needing to inject a lot of cash each time.

The Upsides and Downsides of No-Money-Down Investing

No-money-down investing can be exciting, but it’s not without challenges. On the plus side, it lowers the barrier to entry and lets you build wealth using other people’s money. But it’s not all easy. Higher interest rates, debt risks, and potential cash flow issues are real concerns.

Make sure you do your homework, plan carefully, and choose the right strategy for your financial situation.

The Bottom Line

Buying an investment property with no money down is not just a possibility; it’s an opportunity waiting for those who understand and leverage creative financing strategies. From house hacking for beginners to tapping into home equity for real estate investment, the options are abundant. Whether you’re just starting out or looking to expand your portfolio, approaches like owner financing options and the BRRRR method can make real estate ownership accessible and profitable.

As you navigate the real estate market in 2025, consider partnering with trusted experts to maximize your success. At We Buy Houses County Wide, we’re here to guide you every step of the way. Whether you’re looking for actionable insights or exploring the best methods to achieve your investment goals, our team can help. Take the first step towards building your real estate portfolio today—contact We Buy Houses County Wide for tailored advice and opportunities that fit your unique needs.

FAQs

1. Can I buy an investment property with no money down?

Yes, there are many ways, like house hacking, assumable mortgages, and owner financing, that make it possible.

2. What is house hacking?

House hacking involves living in one unit of a multifamily property and renting out the others to help pay the mortgage.

3. How does owner financing work?

The seller acts as the lender, letting you pay them directly, often with flexible terms and little to no down payment.

4. Are hard-money loans a good idea?

They can be, but only if you have a clear plan to refinance or sell quickly, as they come with higher costs and shorter terms.

5. What’s the BRRRR method?

It stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a strategy to build a real estate portfolio using equity from previous investments.

Resources

Big Reports: https://www.biggerpockets.com/blog/real-estate-1041
Forbes: https://www.forbes.com/councils/forbesbusinesscouncil/2024/04/16/top-4-ways-to-buy-your-first-investment-property-with-little-to-no-money-down/
The Mortgage Reports: https://themortgagereports.com/59359/invest-in-real-estate-with-little-or-no-money-down