Buy and hold real estate for a better retirement.

For conventional financing, you'll typically need a 20% down payment until you have 4 loans in your name. That jumps to 25% down for properties 5 through 10. Some lenders offer programs that only require 15% down for your first 4 properties. Guidelines change often; confirm current requirements with a lender.

As you add properties, lenders also look harder at cash reserves. They want to know you can still make the mortgage payment if a tenant doesn't pay rent. Every situation is different, so talk with a loan officer who works with investors. Contact us and we'll discuss your goals and refer you to the right lender. You're free to choose any lender. When we refer you to an agent in another area, we may receive a referral fee from that agent, as allowed by law. We don't accept referral fees from lenders, title companies, inspectors, or other service providers. You're always free to choose your own.

Most lenders want to see you have “skin in the game” and will only lend a percentage of the purchase price, even if the home appraises for more. Two other options:

• Private lenders. If you have a property under contract with the right profit margins, you can often find a money partner to finance the renovation in exchange for a return when you resell.
• Rehab and construction loans. Some programs let you borrow against the after-repaired value (ARV), covering both the purchase price and the repairs, as long as the appraisal of the ARV supports the loan amount.

We suggest managing your own properties until you own 5 or more rentals. There's no substitute for hands-on experience. eXp Realty, LLC does not do property management, and neither does Marchant Real Estate Group. Jeff and Lynn manage only the homes they personally own.

Maybe. It depends on your credit and financial situation, so talk with a lender to explore your options.

As a general rule, if you have less than 30% equity in your current home, you'll likely need cash reserves to cover 6 months of payments on both properties. With 30% or more equity, reserves could drop to about 2 months.

Always consult a tax professional first. That said, real estate offers some of the best tax advantages of any investment. Nearly every expense tied to a rental can be deductible: mortgage interest, depreciation, repairs, travel, property management, a home office and more. If you hit your maximum allowable deductions in a year, you may be able to carry losses forward. This is general information, not tax advice; limits such as passive-loss rules may apply.