How to Become a Landlord with No Money

How to Become a Landlord with No Money

Don’t have enough capital to become a landlord? Through several methods, you still can.

Investing in commercial real estate to become a landlord is a worthy way of making a living or extra income. It is a stable way of making a passive income, particularly if you hire a property manager. The hard part about it, though, is that many people do not have the capital for a downpayment on an investment property. Thankfully, investors have discovered several viable ways to become a landlord with little to no money. Does it sound too good to be true? Read on below.

House Hacking

House hacking is when a landlord buys a small multifamily building, lives in one of the units, and rents the others out to tenants. Depending on the condition of your property, you may also have to invest in renovations. When you rent out most of the property, your tenants’ payments help make up the mortgage much faster and give you a positive cash flow in the meantime. Eventually, you can move out of the building and keep it as a rental.

Seller Financing

Seller financing is a popular way of becoming a landlord with no money. Instead of having a bank finance your mortgage, the seller will. In this arrangement, you have more flexibility to negotiate terms and even have the chance to pay nothing during the first months of your ownership. The time to settle on an agreement also takes a shorter amount of time.

Partner in a Deal

Another way to invest in a property is to partner in a deal. This agreement can take various forms. For example, if one person is willing to do the work to renovate and manage but doesn’t have the finances, and someone else does, the two parties could work together and co-own the property. Another arrangement is to fix up a residence with the reward of living on the property. Alternatively, both parties could split the down payment. Partnerships differ depending on the situation.


To become a landlord with no money, you can also find one or more lenders. A private lender, crowdfunding, or an organization like FHA or VA are popular means. Once you have tenants in your rental, you can soon enough make up the difference. 

Renting Out Your Home

While other methods of financing your real estate investment exist, this last one does not require borrowing money from anyone to pay for that downpayment. If you can rent out a section of your home, such as the basement or an annex, you can eventually accrue enough capital to afford an investment property. 

Trust the Professionals at Clagett Enterprises for Your Realty Needs

If you’re looking for the perfect realtor for your property or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with selling your home and getting the best possible price, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, and Pinterest.

This entry was posted on Wednesday, February 26th, 2020 at 6:09 pm. Responses are currently closed, but you can trackback from your own site.