One of the biggest myths in real estate is that you need to be wealthy to start. In reality, the amount you need varies enormously depending on how you invest — and some paths require far less than people assume.
If you’re buying a rental or a primary residence with a mortgage, your main cost is the down payment plus closing costs. Down payments can range from as little as 3% to 5% on some owner-occupied loan programs, up to 20% or more on investment properties. On a $250,000 home, that could mean anywhere from roughly $8,000 to $50,000-plus, depending on the loan and property type. Closing costs typically add a few percent on top.
But direct ownership isn’t the only door. REITs let you invest in real estate through the stock market with just a few dollars. Crowdfunding platforms allow you to pool money with other investors, sometimes starting in the hundreds or low thousands. “House hacking” — buying a multi-unit property, living in one unit, and renting the others — can let you get started with a lower owner-occupied down payment while tenants help cover the mortgage.
The point is that there’s an on-ramp at many budget levels. The key is matching the strategy to your resources and goals. The Audra O’Neal Team helps Houston-area buyers and investors understand exactly what they’ll need and map out a realistic plan. Reach out to explore your options.
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The Audra O’Neal Team | ONTX Realty Partners
Call or Text: 281-972-8200
Email: ONealTeamRocks@gmail.com
Web: http://www.ONealTeamRocks.com
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