I Started with Just $3,500: How I Bought My First Rental Property

Can you buy real estate with almost no cash?

What if the barrier to homeownership is less about money and more about imagination? That question hangs over a lively exchange between Dave Meyer and investor Deondra McDonald — two people who started with small paychecks and big determination. Their stories feel less like polished success tales and more like practical maps for anyone who thinks real estate is off-limits without a fat savings account.

From waiting tables to qualifying for a loan

Deondra’s beginning is immediate and relatable: a lab tech job paying about $28,000 a year and a rent increase that felt like a forcing function. She tried the conventional route, got denied, and then treated the denial like a to-do list. She hustled multiple jobs, attacked credit card debt, and saved roughly $3,500 — a modest sum that eventually turned into an $85,000 mortgage approval. I admired how blunt she was about mistakes she made and the things she would have done differently. That honesty is rare and useful.

House hacking as leverage and lifestyle

House hacking comes up again and again, not as a niche trick but as a flexible tool. Live in one unit, rent the rest. Live with a parent, or a student. Deondra’s enthusiasm is infectious — she sees a basement apartment as more than profit; it’s a way to add flexibility to life. Dave pushes back on skepticism about house hacking and then gently reminds listeners that the real value is control: fixed housing costs instead of unpredictable rent hikes.

Down-payment assistance: the underestimated option

Here’s a surprising fact: many states and cities offer stacked down-payment assistance programs that can cover a large portion of a purchase if you agree to live there for a set period. Deondra admits she missed opportunities to use those programs early on. Dave points out that Zillow and some lenders are beginning to aggregate assistance by ZIP code, which makes what once felt like obscure bureaucracy suddenly accessible. I left that segment wanting to call my agent and ask about local programs.

Partnerships, sweat equity, and the currency of trust

Partnerships aren’t magic. For investors who lack capital, sweat equity — managing properties, being the on-site handyman, or stabilizing troubled units — becomes currency. Dave is clear-eyed about the limits: you rarely get generous financing from experienced investors without offering something concrete. That may be time, labor, or demonstrable results. Deondra’s tactic of proving competence on smaller properties before seeking JV capital felt both smart and humane.

How much cash do you really need?

The answer depends on the strategy. For house hacks and properties eligible for assistance, a few thousand dollars might be enough to cover deductibles or a big repair. For non-owner-occupied purchases, expect to need a quarter of the purchase price down — and realistic reserves beyond that. Both speakers emphasize that reserves are not optional. That single practical line — "have enough to replace the most expensive repair insurance won’t cover" — is a small rule that prevents a cascade of bad decisions.

Creative financing with caveats

Seller financing, subject-to deals, and 0% introductory credit-card offers can be powerful, but the conversation stresses caution. Dave asks the blunt question every new investor should ask: why don’t you have money? If the answer is poor financial habits, creativity becomes gambling. If it’s structural — low wages, systemic barriers — then creative finance and public assistance are reasonable tools. The moral clarity here is refreshing: creative deals aren’t a fix for poor money habits, but they’re legitimate tools when used responsibly.

Practical habits that matter more than tactics

• Get a baseline of financial discipline: paying down high-interest debt and building a small emergency fund first.
• Use experience as capital: manage properties, live on-site, and document results to attract investors later.
• Know your worst-case repair costs: and insure or reserve against them before you sign a purchase agreement.

The emotional contour of the conversation is notable: frustration at missed opportunities, a cautious optimism about programs and partnerships, and a steady insistence that time — not shortcuts — is the real ally. Both hosts return to a long game: commit to seven to ten years, learn on smaller properties, and scale incrementally. That’s not glamorous, but it's believable.

What lingered with me

I kept thinking about how many people assume you either have to be wealthy or wildly lucky to buy property. Here’s a quieter truth: persistence, clarity about what you can offer, and a willingness to do unglamorous work create options. The conversation ends not with a checklist but with a temperament — steadiness, realism, and just enough impatience to get started.

That kind of steady impatience feels useful right now. It’s the opposite of get-rich-quick noise and closer to a plan you can live with for a decade. I walked away wanting to audit my own insurance deductibles and to search my ZIP code for assistance programs I’d never heard of. That mix of practical micro-steps and long-term mindset is the takeaway I keep returning to.

The reflective thought that stays with me is simple: access to real estate often depends less on having everything ready today and more on building small proofs of reliability that unlock larger opportunities down the road.