How I Buy Rental Properties With Zero Cash—and How You Can Too!

Written by David Dodge  

How I Buy Rental Properties With Zero Cash — And How You Can Too

I’m David Dodge. I’ve been immersed in the St. Louis real‑estate scene for nineteen years, wholesaling more than 750 houses through House Sold Easy, and I co‑wrote The BRRRR Method. But here’s the thing: I’ve never once used my own money to close a deal. Not for down payments. Not for rehabs. Not even for earnest money.

You read that right.

This is the exact system I teach my students — many of whom juggle multiple side hustles just like I still do. If you’re sick of paying rent and ready to start collecting it, stick with me. I’m going to walk you through how you can buy your first (or next) rental property—whether in St. Louis or elsewhere—without putting any of your own cash on the line.

My First Zero‑Cash Deal: Proof It Works

I still remember the moment I closed my first “no money out of pocket” deal. It was a tired duplex in North City, back in 2017. The seller was a retired teacher who’d inherited the property from her late brother. She was fed up with landlords, maintenance, and tenants calling at all hours. She just wanted monthly checks and a hands‑off setup.

I offered full asking price, zero down, and a promise: I would handle everything — all repairs, all tenants, all the headaches. She agreed. I signed. My tenant moved upstairs the next week and started paying my mortgage.

That deal wasn’t luck. It was a system I’d refined. And the beauty of it? You can replicate it.

Because here’s what I learned: real estate isn’t a game of chance—it’s a game of structure, leverage, and consistency. I didn’t magically stumble into profit—I built the path. And now I’m going to show you how.

The Truth About “No Money Down”

Let’s get real: the phrase “no money down” sounds glamorous—but it’s not fantasy. Someone’s paying. Appraisals, title work, insurance, taxes—they all cost money. The difference is this: that someone doesn’t have to be you.

In my deals, the cash flows in many directions: from government programs, motivated sellers, grants, private lenders, or future tenants. My job? To stack the structure so these funding sources cover the deal, while my checking account stays untouched.

Here’s a recent example: In October 2025, I closed a $192,000 duplex in Bellefontaine Neighbors (just north of St. Louis city). Hard money covered the purchase and the rehab. A private lender funded the fix‐up. The seller credited back most of the closing costs. I walked in with zero cash. Thirty days later, I refinanced, pulled out $25,000 tax‑free, and locked in roughly $1,400/month in positive cash flow.

That’s leverage in action. That’s how you make the system work—but only if you know how to stack the pieces. And you will.

Loans That Don’t Require a Traditional Full‑Time Job

Here’s a big myth to bust: you need a perfect W‑2 job to buy real estate. False. If you’re hustling — driving for Uber, delivering for DoorDash, bartending, wholesaling houses — you still qualify for programs that don’t demand the traditional job history.

Let’s talk specifics:

USDA Rural Development Loans

These are often overlooked—but gold. In the greater St. Louis area, once upon a time, “rural” sounded remote. But the USDA’s definition is generous. Places like Arnold, Fenton, St. Charles, even pockets of South City qualify. Down payment? Zero. Income caps? High enough for many side‑hustlers.

I used one of these last year in Herculaneum (30 minutes south of the Arch). My upstairs tenant pays $1,100/month. My housing cost? Negative.

VA Loans

If you’re a veteran, this is a beast of an opportunity. Zero down, no PMI, and you can finance up to four units as long as you live in one for a year. You get to live there, build equity, rent the rest—and stand up your portfolio faster.

FHA + Down Payment Assistance

For everyone else, FHA is a strong path. Down payment is technically 3.5%—but combine that with local down payment assistance (DPA) programs and seller credits, and you can get in with nothing out of pocket.
In St. Louis, programs like the Lutheran Housing Opportunity Program (LHOP) offer up to $10,000 grants. Beyond Housing offers up to $12,500, forgiven after five years. Stack these programs with seller concessions, and you can walk into a deal with empty pockets and full ownership.

Seller Financing: Turning Wholesale Exits Into Your Entry

In my business, I wholesale 60‑70 houses a year. At least half the sellers I speak with don’t want a quick cash offer—they want monthly income without the headache of being a landlord. That’s where seller financing becomes a massive win-win.

Here’s how it works: The seller acts as the bank. You agree on:

• A price

• An interest rate and term

• Direct monthly payments to them

• Transfer of deed at closing

If structured wisely, your down payment can be zero.

Example: I had a duplex under contract in Gravois Park. After‐repair value: $220,000. The seller was going through a divorce, living in California, didn’t want to deal with realtors or vacancies. I offered $192,000, zero down, 6.5% interest, seven‑year balloon. He accepted. My buyer (a DoorDash driver with three side gigs) moved in downstairs, rented upstairs for $1,600, and started seeing profits of $210/month from day one.

My script is simple: “I’ll buy your property with no money down, close fast, and take over all repairs and tenants. You get monthly checks and avoid commissions.” It works because certainty often beats a few thousand dollars upfront.

Stacking Financing Like a BRRRR Master

You’ve heard of the BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat). I live by this. It works exceptionally well with zero cash. Here’s the flow:

1. Buy: Use a loan (USDA, FHA, etc.), use DPA or seller concessions so your down payment is covered.

2. Rehab: Fund the rehab with private or hard money.

3. Rent: Get your tenants in place, stabilize cash flow.

4. Refinance: Once stabilized, switch to a conventional loan. Pull out your equity tax‑free.

5. Repeat: Use the equity and cash flow to acquire the next property.

Here’s a case study: A student bought a triplex in Walnut Park for $210,000. Down payment ($7,350) covered by LHOP. Closing costs ($6,200) paid by seller. Rehab ($18,000) funded by a private lender at 10%. Rents came in at $2,700/month. After stabilization, they refinanced at $260,000 and pulled out $35,000. Started with nothing. Now they own a paid‑off property, positive cash flow, and funds to buy the next one.

House Hacking: Living for Free (or Getting Paid to Live)

Want to live for free—or better yet, get paid to live? House hacking is one of the fastest ways to build your portfolio. Here’s how it works: Buy a duplex, triplex, or four‑plex, live in one unit, rent the rest. In St. Louis, rents are strong enough that one or two tenants can cover your entire monthly payment.

I own a duplex in Tower Grove South. My mortgage, taxes, and insurance cost $1,290/month. The tenant upstairs pays $1,450/month. I pocket $160 monthly. That’s enough for Cardinal tickets and a six‑pack of Schlafly—on my dime.

Start with an FHA (3.5% down) or VA (zero down, if eligible). Live there for a year, then move out, rent your unit, and repeat. I call this the “Nomad BRRRR”—the same leverage, just slower and safer.

OPM: Other People’s Money — The Fuel of My Portfolio

Other People’s Money (OPM) is the fuel that’s powered my growth. I constantly meet private lenders—doctors, retirees, small business owners—who want 8–12% returns without swinging a hammer. I find the deals, they fund them. We split profits.

Family gifts also work. FHA allows 100% of the down payment from a relative via a simple gift letter. Self‑directed IRAs? They’re sleeper hits. Investors lend at 7%, tax‑deferred. I get flexible terms. They get steady returns. Win‑win.

Credit, Income & Finding Deals in the 314

Credit Doesn’t Need to Be Perfect

You don’t need flawless credit. But you do need upward direction. I pull my buyers’ reports at AnnualCreditReport.com, dispute errors (60‑70% have them), add utility payments with Experian Boost, and keep credit card balances low (under 30%). I helped a buyer go from 608 to 692 in 68 days.

Income Is Easier Than You Think

Worried your side hustle disqualifies you? Not necessarily. FHA will accept three months of bank deposits, Uber, DoorDash, Venmo, and wholesale fees. USDA wants a Schedule C if you’re self‑employed. Stack it all. Use what you have.

Where to Find the Deals

In St. Louis, focus on North City and North County—zip codes like 63136, 63137, 63115. After your shift, drive the neighborhoods. Look for boarded‑up windows, overgrown lawns, and “For Sale by Owner” signs. Check probate listings at the Recorder of Deeds. Text FSBOs on Facebook Marketplace. The deals are hiding in plain sight.

The Risks I’ve Paid For (So You Don’t Have To)

No system is flawless. Here are mistakes I’ve made—and valuable lessons I learned.

• I once paid a hard‑money lender 18% interest because I didn’t negotiate. To fix this: push hard money down to 12% interest and 2 points.

• I’ve had a tenant skip rent and cost me $10,000 in repairs. Solution: screen tenants like your cash flow depends on it—because it does.

• I missed tracking a balloon payment once. Ouch. Always set calendar reminders two years ahead. Never skip inspections.

These mistakes hurt—but they taught me what not to do. I paid, so you don’t have to.

Conclusion: Your Turn to Build

Here’s the bottom line: Buying rental properties with zero cash isn’t some shady gimmick. It’s a strategy. It’s leverage. Its structure. And yes—I’ve been doing this in St. Louis for almost two decades. The deals I do today? Born from the same system I used on my first duplex in North City back in 2017.

If you’re ready to stop being a tenant and start being a landlord, this is your blueprint. Seize the programs that don’t care about your W‑2. Lean on seller financing. Stack your funds with BRRRR. Live in one unit, rent the rest. Use other people’s money. Improve your credit, chase the deals, and manage the risks.

You don’t need stacks of cash. You don’t need perfect credit. You don’t need a 9‑to‑5 job you hate. You need a mindset, a system, and the willingness to act.

In real estate, time is your friend. The longer you wait, the more you pay in rent—and the more someone else collects income from your property. Flip the switch. Become the collector instead of the payer.

If you’re ready, I’ll walk with you—step‑by‑step—through the exact tools, forms, negotiation scripts, and property scans I use. The same playbook I’ve used through nearly 750 wholesale assignments and 19 years of full‑time investing.

It’s your move. Let’s build your future.