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How to Make $500/Month with Zero Money Down (Real Deal Breakdown)

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“Zero money down” often sounds like a late-night infomercial. At Mac Does REI, we use creative financing to structure real deals that produce monthly cash flow with little to no upfront capital.

Here is a real-world breakdown of a deal we recently completed, including how we acquired the property, funded it, resold it, and built a $500 per month passive income stream.

The Acquisition

  • Location: DFW suburb
  • Acquisition Method: Subject-to the existing mortgage
  • Existing Mortgage: $132,000 at 3.5%
  • Monthly PITI: $1,050
  • Seller’s Situation: Behind on payments and relocating out of state
  • Catch-Up Costs: $6,000 in arrears
  • Funding: Private lender covered catch-up costs and closing

The Exit Strategy

We resold the property using seller financing.

  • Sale Price: $185,000
  • Down Payment from Buyer: $18,500
  • Interest Rate: 9.5%
  • Loan Term: 30 years
  • Buyer PITI Payment: $1,625

The Numbers

Item

Amount

Monthly income from buyer

$1,625

Monthly expense to underlying

$1,050

Net monthly cash flow

$575

Upfront cash from buyer

$18,500

Total cost to acquire

$6,000 + $1,500 (closing) = $7,500

Net cash in pocket at close

$11,000+

How Was It Zero Down?

We funded the $7,500 acquisition costs using a private lender at 12% interest-only, with repayment due in six months after resale or refinance.

The buyer’s down payment covered the private lender payoff, closing costs, and left profit on Day 1. On top of that, the deal created long-term monthly cash flow.

Why This Works

  • The seller walked away clean and avoided foreclosure.
  • The buyer, who could not qualify for a bank loan, became a homeowner.
  • The investor secured $500 per month in passive income.
  • Equity and backend payoff remain available in future years.

Key Takeaways

  • Do not chase equity. Chase control of the deal.
  • Subject-to combined with wraps allows you to borrow to acquire, then resell at a premium.
  • Down payments from end buyers can fund your entire position.
  • Note creation builds long-term passive income with high ROI.

This strategy is not theory. It is a proven method we use every month, and it can work for you too.

Want help structuring your first zero-down wrap deal?

Book a strategy session with Mac Does REI and let us help you build your next cash-flowing asset with no bank loan required.

Visit MacDoesREI.com today.
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