#476: 5% Down Rental Loans: When They Work (And When They Don't)

Real Estate Investing with Coach Carson

Chad Carson

Business, Investing

4.9 • 613 Ratings

🗓️ 23 February 2026

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

📅 Schedule an Appointment with Bryan → https://www.coachcarson.com/bryan-pod-476

⭐ Get my coaching & community to achieve financial freedom → https://www.coachcarson.com/rpm-pod-476

▶️ Next Episode: DSCR Loans Explained: How to Qualify Without a W2 or Tax Returns

Apple: https://podcasts.apple.com/us/podcast/413-dscr-loans-explained-how-to-qualify-without-a/id1448707654?i=1000709881289
Spotify: https://open.spotify.com/episode/2L6FtKOwQzRhRaSjlFTHOd?si=JQjaSeDcRb2INGPokmRJBw

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🎬 Topics Covered:

(00:00) - Low down payment strategy overview
(00:56) - 5% down owner-occupied conventional explained
(02:01) - Cosigning strategy and real example
(05:47) - Investor phases and scrappy financing
(06:54) - Repeat annual house hacks to scale
(08:23) - FHA basics and self-sufficiency test
(09:41) - FHA vs conventional: costs and credit
(11:24) - VA loan: zero down benefits
(13:47) - Second home loans with 10% down
(18:35) - Cash-out refi and HELOC mechanics
(20:39) - Risks, LTV limits, and cushions
(24:27) - Using seller concessions to save cash
(28:21) - BRRRR overview: buy, rehab, refinance
(31:23) - Imperfect BRRRR still moves you forward
(32:35) - BRRRR wins: singles to grand slams
(33:58) - Rates impact cash-out and cash flow
(36:19) - Common mistake: ignoring post-move cash flow
(36:37) - Don't neglect reserves; slow down
(37:55) - Avoid emotional buys; follow numbers
(40:41) - How to contact with Mortgage Expert, Bryan Maddex
(42:10) - DSCR Loans Explained: How to Qualify Without a W2 or Tax Returns

🎙️ Episode #476 - Is 5% down enough to start investing in real estate? Learn the legit strategies, loan options, and risks you need to understand before making your move.

📄 Show Notes: https://www.coachcarson.com/5percentdownrentals/

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ADDITIONAL RESOURCES

💵 Need Investor-Friendly Financing?

This is who I trust → https://www.coachcarson.com/bryan

🏠 TurboTenant – Streamline Your Property Management for Free: https://www.coachcarson.com/turbotenant

📱 DealMachine – Software to help you buy more real estate deals: https://www.coachcarson.com/dealmachine-pod

Transcript

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0:00.0	Saving up cash for your next investment property can really slow you down as an investor.
0:04.1	But there are legitimate ways to put less money down, keep moving forward, and still avoid taking
0:09.0	crazy risks.
0:10.4	Today I'm joined by investor mortgage expert Brian Maddox, and we'll walk you through the best
0:14.3	low-down payment options and how to decide which one actually fits your situation.
0:30.6	If we haven't met yet, my name is Chad Carson. You can also call me Coach Carson. And on this channel, I teach you how to use a small and mighty style of real estate investing to achieve
0:34.3	financial freedom so you can spend your time doing more of what matters.
0:38.1	So Brian, anytime somebody asked me about doing a deal and financing with less money down,
0:42.6	my answer is like, all right, talk to Brian. He's my go-to guy. But in this episode, I want to give
0:47.6	a list of some ideas for people about some of the like specific options, specific financing
0:53.0	and talk about who that's a good
0:54.4	for, maybe who is not. And so let's just start from the top. There's a five percent down program
0:58.6	that gets a lot of attention. People are like, wow, I can buy a property that could eventually
1:03.1	be an investment for five percent down. Let's just start there. Like what is that program?
1:07.7	Who can qualify for it? And let's dig into it. It's a great starting spot.
1:12.9	You don't have to be a first time home buyer.
1:14.8	You can have other mortgages, but you're really looking at Fannie Mae and Freddie Mac.
1:18.5	And you're looking at an owner occupied property.
1:21.0	Or you're looking at co-signing for someone who's going to owner occupy.
1:26.4	So a couple of examples with a two to four unit property for an investor, you live in one
1:32.3	unit for at least 12 months, you now can buy that two to four unit property with just
1:37.1	5% down.
	...

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