How do I buy an investment property?

How do I buy my first investment property?

One of the biggest misconceptions about investing in real estate is that you always need a 20% down payment. While that's generally true for properties you intend to rent out immediately, there are other ways to get started with much less.

One strategy is to purchase a home as your primary residence. Depending on the purchase price and mortgage rules, you may be able to buy with as little as 5% down. This is exactly how I got started.

If you purchase a home with a basement suite or another rental unit and live in one of the units yourself, you may still qualify for owner-occupied financing while earning rental income to help offset your mortgage.

Many investors begin by living in their first home for a period of time before moving into another primary residence and converting the original home into a rental property. This approach allows you to enter the real estate market sooner without needing a 20% down payment on your first purchase.

Every situation is different, and mortgage rules can change, so it's always a good idea to speak with a mortgage broker before making a decision. The important thing is to remember that getting started may be more achievable than you think.