Owning a multifamily property is one of the best ways to generate passive income and build long-term wealth. However, many aspiring investors believe they need a large down payment to get started. The reality? You can acquire a multifamily property with little to no money down using creative financing strategies.
If you’ve been wondering how to buy a multifamily property with no money, this guide will walk you through 10 practical strategies to help you break into real estate investing—even if you don’t have capital upfront. Plus, we’ll introduce you to financing solutions from eFunder Capital, designed to help investors secure funding quickly and efficiently.
At eFunder Capital, we offer flexible multifamily financing solutions to help you secure your next investment. Whether you’re a first-time buyer or seasoned investor, we can structure the right loan to fit your goals.
Don’t let lack of capital hold you back—schedule FREE Consultation today and start your journey to financial freedom!
10 Ways to Buy a Multifamily Property with No Money Down
1. Partnering with Another Investor
When you lack capital, partnering with an investor who has the funds can be a win-win situation. One person provides financing, while the other brings in the deal, management skills, or expertise.
Many real estate deals happen through equity partnerships, where investors split profits based on their contributions. Another common approach is forming a joint venture (JV), where each partner plays an active role in the investment. Networking at real estate meetups, online groups, and investor forums can help you find potential partners.
2. Equity Sharing Agreements
With equity sharing, an investor or private lender funds the purchase in exchange for partial ownership of the property. This means you don’t have to come up with the down payment or financing, but you will share the rental income and profits from appreciation.
This method is ideal for investors who lack cash but have the ability to find, manage, or add value to a property. By structuring a strong agreement, both parties benefit without requiring personal capital.
3. Seller Financing
Some property owners are willing to act as the bank, allowing you to pay for the property over time through seller financing. Moreover, this eliminates the need for a traditional lender and often allows for more flexible down payment and interest rate terms.
This strategy works best when dealing with motivated sellers who are open to creative financing arrangements. Negotiating a low or zero-down deal can make it possible to buy a multifamily property without using your own funds.
4. Hard Money Loans
If you need quick financing but don’t qualify for a conventional mortgage, hard money lenders offer short-term loans based on the property’s value rather than your credit score.
These loans come with higher interest rates, but they can be a great option if you plan to refinance or sell the property quickly. Many investors use hard money loans to acquire a multifamily property, renovate it, and then transition to a long-term mortgage.
5. House Hacking a Multifamily Property
One of the best ways for new investors to buy a multifamily property with minimal cash is through house hacking. This strategy involves living in one unit while renting out the others to cover your mortgage.
By qualifying for an owner-occupied loan, such as an FHA loan, you can significantly reduce the down payment—sometimes as low as 3.5%. This approach not only lowers housing costs but also helps you build equity while collecting rental income.
6. Government-Backed Loan Programs (FHA & VA Loans)
For first-time buyers and owner-occupants, government-backed loans provide an affordable way to buy a multifamily property.
- FHA Loans allow you to purchase a 2-4 unit multifamily property with as little as 3.5% down.
- VA Loans, available to eligible military personnel and veterans, offer 0% down payment options.
These loans come with lower interest rates and easier qualification than conventional mortgages, making them ideal for investors looking to get started without a huge upfront investment.
7. Real Estate Crowdfunding
If you don’t have funds to invest but want to get involved in multifamily real estate, crowdfunding offers a solution. Platforms like Fundrise, RealtyMogul, and CrowdStreet allow investors to pool money to invest in larger multifamily deals.
While this strategy doesn’t give you direct ownership, it allows you to gain real estate exposure with a low capital investment. It’s an excellent option for those looking to learn the market and build capital for future direct investments.
8. Cash-Out Refinancing on an Existing Property
If you already own a property, you can leverage its equity to buy a multifamily property through cash-out refinancing. This allows you to pull cash from your current property’s value and use it as a down payment for your next purchase.
This strategy is especially useful in a high-appreciation market, where property values have increased significantly. Refinancing provides better interest rates than alternative financing methods, making it an efficient way to fund real estate investments.
9. Loan Assumption
In some cases, you can take over an existing mortgage rather than securing a new one. If a seller has a low-interest mortgage, they may allow a buyer to assume the loan instead of going through a traditional lender.
Loan assumption can be a great way to bypass high interest rates and large down payments, but it requires lender approval. Research multifamily listings with assumable mortgages to find opportunities.
10. Lease Options & Rent-to-Own Agreements
With a lease option, you rent a multifamily property with the right to purchase it later at a predetermined price. This allows you to build capital and improve credit before securing permanent financing.
A portion of your monthly rent often goes toward the down payment, making it easier to transition from renter to owner. This strategy is beneficial for those who need time to secure financing while locking in a property’s purchase price.
How eFunder Capital Can Help You Buy a Multifamily Property
At eFunder Capital, we offer tailored financing solutions for real estate investors looking to buy multifamily properties—even with little money down.
Whether you need short-term capital, bridge loans, or long-term financing, we can help structure a deal that works for you.
Frequently Asked Questions (FAQs)
1. What credit score do you need for a multifamily loan?
Most lenders require a credit score of 620-680, but eFunder Capital offers financing options for investors with credit scores at least 680.
2. Can you buy a multifamily home as a first-time homebuyer?
Yes! FHA loans allow first-time buyers to purchase a 2-4 unit multifamily property with just 3.5% down.
3. How does seller financing work for multifamily properties?
Seller financing lets buyers pay the owner directly instead of using a bank, often with lower upfront costs and flexible terms.
4. Are there special loan programs for real estate investors?
Yes! eFunder Capital provides multifamily loan programs tailored for real estate investors.
5. How can I qualify for financing with no money down?
Creative strategies like house hacking, partnerships, and seller financing can help you buy a multifamily property with no money down.
Take Action and Start Your Multifamily Investing Journey
Buying a multifamily property with no money down is not only possible but a proven way to start building long-term wealth. The key is to think creatively and leverage the right strategies—whether through partnerships, seller financing, house hacking, or low down payment loan programs.
Success in real estate comes from taking action. Too many aspiring investors get stuck waiting for the “perfect time” instead of seizing opportunities. Educate yourself, run the numbers, and make a move. The best investors aren’t the ones with the most money—they’re the ones who find solutions and take action.
