Buying Investment PropertyHow to Save Up Money for a Down Payment for Investment Property by Ahmad Shukri September 2, 2018August 30, 2018 by Ahmad Shukri September 2, 2018August 30, 2018It’s not easy wanting green! The real estate market is one that’s so complex and simple at the same time. It really all depends on how well you invest the time to understand the concepts and real estate investment strategies that best fit your investment needs. As we all know, the beginner real estate investor will face one issue with his/her first rental property, and that problem is finding the down payment for investment property.Of course, with each real estate deal you make, you should expect to put a percentage down. The issue remains coming up with the down payment for investment property, and especially your first-time investment property.Creative ways to save up money for a down payment for investment propertyWe’ve gathered tried and proven ways to help you come up with the necessary down payment for investment property. Keep in mind that some might work for you while others won’t.Eliminate debtEliminating debt should be a priority whether you’re saving up for a down payment for investment property or not. When buying an investment property, getting financed is not as easy as it used to be before the market crash in 2008. In other words, lenders are more careful and looking for the best candidates with the lowest default capabilities. It’s important for real estate investors to have a high credit score; it makes things easier while retaining low-interest rates on any borrowed amount. Additionally, when buying an investment property, it might seem like you’re putting your real estate investing career on hold when trying to eliminate debt, but that’s not the case. If anything, you’re a step closer to building the real estate investment portfolio of your dreams.If you’re curious about being in debt while real estate investing, read this blog post: Is It OK to Be in Debt While Investing in Real Estate?Plan for itPlanning for investment properties may not be the first thing you wish to do as an eager real estate investor, but you must plan! Planning will create a path for you lined with specific milestones. Ask any of the most successful real estate investors and they’ll tell you of the importance of planning for a specific real estate investment strategy when trying to save up for a down payment for investment property. Additionally, planning for different real estate investment strategies can affect the time needed and amount of down payment. To explain further, saving up for fix-and-flips is different than saving up for a single-family rental property.Start saving slowlyOne of the characteristics that define real estate investors is their ability to move slowly but achieve something substantial after all. It doesn’t mean that you need to be saving large sums of money every month to reach your goal; you can simply start saving slowly on a monthly basis while having an annual saving target for your down payment for investment property. You would be surprised what you can achieve in one year when being frugal.Owner-occupant investment propertiesOwner-occupant investment properties should be in every real estate investor’s portfolio. This can help you save up on your down payment and even cut your investment property mortgage rates substantially. This real estate investment strategy is recommended for the beginner real estate investor. A great tip to keep in mind with owner-occupant investment properties is to ensure you’re capable of managing such a property as a part-time real estate investor. After all, it’s considered multi-family real estate investing. Just make sure you’re comfortable with sharing the property with tenants.This method was used by many real estate investors who were trying to come up with a down payment for an investment property but realized they can slash the down payment required by a substantial figure by simply finding a multi-unit real estate investment. If you need more information on buying a multi-family investment property, read this blog post: Is Investing in Multifamily Homes Appropriate for Any Real Estate Investor?Do the mathA crucial step of every real estate investing career is doing the math to get you there. After all, real estate investing is a numbers game, and those who master the numbers are masters of the game. So, invest in an investment property calculator to make your task of saving for a down payment for investment property a bit easier. An investment property calculator can help you determine cash flow, capitalization rate, and even Airbnb occupancy rates.Let’s take Mashvisor’s investment property calculator under the spotlight to clarify. Through it, a real estate investor can find out all the details about an investment property before the purchase itself. This also includes determining whether you’re buying an investment in cash or mortgage. The sophisticated calculator can run a comparative market analysis for you while in the comfort of your own home. If you’re wondering why you need an investment property calculator, read this blog post: An Investment Property Calculator Is a Must. Read Here Why.To enjoy the perks of Mashvisor’s investment property calculator and make use of the 14-day free trial, click here.Sell and give up unnecessary itemsYes, we are suggesting frugal living for a few months. A quick way to do so is saving up any bonuses from work instead of going on a shopping spree. You might be surprised by how much unnecessary items you purchase every month that can add up to big totals. Keep in mind that saving up for a down payment for investment property requires you to be more attentive to your financials. A great tip to do so is to write down monthly expenses and monitor your spending behavior. Additionally, selling your belongings that you no longer use can be a great influx for your down payment saving account. Consider having a garage sale and getting rid of those items sitting and collecting dust.Final wordsExpert real estate investors have once saved up for a down payment for investment property. Knowing so should motivate you to aspire to join them. Saving up for a down payment for investment property and having a plan can give you that head-start among the many in today’s consumer market. So, start saving up and get a head-start for your real estate investing career.If you have any more insights on saving up for a down payment, please share them in the comments section below. Start Your Investment Property Search! START FREE TRIAL 0FacebookTwitterGoogle +PinterestLinkedin Ahmad ShukriAhmad is Content Writer at Mashvisor with a degree in marketing. He enjoys writing about everything related to real estate and especially the top markets for investment properties. Previous Post When Is Professional Property Management a Smart Idea? 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