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Budget Real Estate Investing

When it comes to making money, it seems like no one can stop talking about real estate investing. Some examples of profitable real estate investing are when you can flip a house in a high-market area and fill it with tenants for more than you put into it, when you own and lease commercial space, or when you rent residential properties. Due to high home appreciation and the cost of rent, many people would love the opportunity to invest in real estate, however, they believe they don’t have the money to do so. Here are some tips for investing in real estate on a budget. 

House Hacking

Bulk sales sometimes feel unnecessary, like when it’s a dollar cheaper to buy five boxes of cereal than it is to buy three. However, when it comes to real estate property, it can be useful to buy more so you have more to rent. For example, many people have begun buying multi-unit properties so they can live in one unit and rent out the other. Buying a duplex, triplex, or fourplex can also work in your favor when it comes to FHA loans which only require a small downpayment of 3.5%. Plus, when you are ready to move somewhere new, you can keep the property, rent out the other unit, and continue to make money. 


If you have the knowledge and motivation to find an investment property but not the money, you may still be in luck. There are plenty of people with the money for an investment property, or at least the ability to get a loan, who want to break into the market but don’t know where to start. Find these people and combine your skills and money to create a beautiful partnership. Together you can find an investment property and work to make it something profitable. 

Seller Financing

Banks aren’t always the easiest entity to work with which is why seller financing is sometimes a better option, especially when you need to stick to a certain budget. Instead of asking the bank for a loan and paying them back over time, you purchase the property from the seller and pay them back over time. Together you will create an agreement for the interest rate, payment schedule, and consequences of default. 

Home Equity

When you are eager to invest but you have no upfront money, it can be useful to capitalize on home equity. If you currently own a home that is worth more than you owe on it, you qualify for home equity. There are two ways to use home equity. The first is you can rewrite your initial mortgage for a cash-out refinance, or you can keep the first loan and add a home equity line of credit. Either way, you’ll be making money you can set aside for an investment property. 

Investment properties can help you make a passive income and provide financial stability. Don’t wait, even if you are on a budget there are options for you to begin investing. Start by looking for good deals and educating yourself on real estate investing. 

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