Cash Flow Income Properties with No Credit, Loan or Down Payment

Grow your income property investment portfolio without the need to deal with mortgages and lenders.  In fact, you can even build a nice stable of cash flow income properties without using your own money or credit.  I know this sounds far-fetched but it absolutely can be accomplished.

Before I share with you how to do the above, let’s discuss why investing in an income property is the way to go.  Let me rephrase that a bit.  Let’s take a moment to talk about why you need to make investing in cash flowing rental units the foundation of your real estate investing strategy.

Income Property for SaleThink about this scenario for a moment.  You are saddled with debt, stuck in a 9 to 5 job and short on extra cash after paying all your monthly bills. Would you rather work longer hours to try to get your head above water, or would you rather have other people giving you money to pay off those bills and free you from your cubicle-enslaved life?

When you own cash flow properties, other people are paying off your debts.  They are providing the passive income you need to walk away from your job.  They are giving you the money to take care of your assets.  Best of all, their money is providing you with freedom.  Freedom from your job and the financial freedom to live your life the way you want to live it today, tomorrow and in the future.

Sounds great doesn’t it?  Well, here’s what can make it sound (and work) even better.  If you combine the strategy of investing in cash flow income properties with subject-to real estate investing, you can turbocharge your trip to the land of financial independence.  Not sure what subject-to is all about? [Click Here for the Details]

Simply put, subject-to is a real estate investing strategy where an investor receives the deed and ownership while the seller keeps mortgage and the debt.  In other words, you control the property and can do anything an owner can do (rent it, lease it, live in it, sell it) without having to secure a loan, use your credit and, in some cases, your own money.  In most cases, you are providing a valuable service by helping the homeowner avoid foreclosure and making payments on the homeowner’s mortgage.

To turn this deal into a cash flowing income property, you must secure the property subject-to the existing mortgage at a discounted purchase price.  You should set the option terms to purchase the property at a time in the future that works with your exit plan.  Maybe you are going to rent the units for many years to come and leverage the equity to obtain more income properties.  Maybe you will put tenants in place with an option to buy.

However you structure the option, make sure to get the income property at the right price so that you achieve positive cash flow with your tenant payments.  Remember, the goal is to create passive income.  Then, you will use the automatic monthly income to free you from your day job and give you financial freedom.


  1. Thanks for the great info Matt!

    What contracts would you typically use for this situation? I’m assuming you would use a contract for the seller and another contract for the tenant buyer. Are they the same contract?

    Thanks again!


    • Hi Steve,

      You’re welcome.

      Most state Realtor contracts include a section for “subject-to” investing. And yes, you will have a different contract for the Seller and the Tenant Buyer. I use this service for most of my contracts. Everything you need is here at

      • I have talked to a few guys I know who are dealing with real estate and doing well with it, and they keep beating me over the head about the value of subject-to. I can see how it can really help your cash flow and is preferable to becoming leverage to obtain the property, but I have never heard a good explanation of why a home owner would want to go this way. What exactly is in it for them?

        • Hi Mike,

          Good question. It comes up frequently.

          Remember this always, the foundation of every deal is in the Seller’s motivation to sell. The Seller will agree to just about anything if they’re in a big enough of a bind and if your solution will get them out of that bind.

          From my experience, however… “Subject-to” works really well when the Seller needs to act fast and don’t have time for anything else.

          On a side note: One mistake new real estate investors commonly make is that they assume that they know what the Seller wants and what they are willing to do. Just because you couldn’t imagine agreeing to a subject to yourself doesn’t mean that others won’t.

          Good luck, and stay in touch.

    • Hi Steve,

      In most cases, you would use a purchase contract for the Seller and a lease option (two different contracts – Lease Agreement and Option Agreement) for the tenant Buyer.


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