First time buyer - Multi family house hack

13 Replies

I graduate college in a couple months and want to jump into real estate investing right away. I am worried about getting approved for a loan considering I have been working part time for the past couple years. I should be making roughly 70k a year once I graduate and my fiancé graduates nursing school this coming March. Any advice or recommendations would be much appreciated. 

Updated about 2 months ago

Fiancée

I would definitely pretend like you make 30-40k, live on that, and dedicate the rest towards the funds required for real estate investing after taxes. It is possible that you can qualify for a loan just with the 70k job offer without full time history, but consult with a lender as I am not one. 
Are you looking to house hack with an FHA loan as an example, or buy a separate property just to rent out or BRRRR? Figuring out your strategy for the first deal as early as possible will allow you to best prepare for it.

Good luck, Josh

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@Edward James smith Speak with a local lender and they can probably give you a roadmap on what the approval process will look like given your situation. There has to be someone local to Spokane on here that can help you out. Then from there you can devise a plan on how to land your house hack. Best of luck, it is a great strategy. 

Hi Edward! 

Congratulations on graduating!

There are many ways that you can get into real estate without going through a bank and getting a traditional loan. Creative finance is a great way to get started. The way that my husband and I learned about these options was from Pace Morby on YouTube. I highly recommend watching his videos to learn more about this! It will bring you many more opportunities if you can master creative finance. 

Good Luck!

If you're looking to do fix & flips, I would suggest talking to a hard money lender. They have different requirements, but are typically easy to work with. If you're looking into a buy & hold, then get with a traditional lender and they can either work with you now or help give you a roadmap to getting there faster 

Congrats on graduating! I would check with a broker (one who has access to many loan programs vs. a bank who is limited to their own). 

I saw a program recently that combined job offer/school to count towards work history. It looked like they just viewed the offer, and as long as it was consistent with your major, it counted. Good luck! 

Hi @Edward James smith , congrats on your graduation. Typically, people have to wait 2 years before qualifying with a specific income. Since you're a college graduate, and if you get a job in the field you went to school for, you don't need to wait two years. You should, of course, speak to a lender to make sure you qualify. Feel free to reach out if you have any questions!

Lending isn’t black or white. There’s a lot in between in terms of getting you approved - If you don’t get approved at a big bank then try a credit union, for example.

Definitely reach out to a local lender, a national lender, a credit union and see what they can do for you and see what their requirements are. You don’t have to launch a full application for credit to speak with them remember. 

Good luck with it all. 

Hey Edward! 

You probably have more opportunities than you realize! First off, college can take the place of a two year work history. Were you in college for the past two years? You can also use part-time income if you have been doing it for at least two years. Do you own your primary residence yet? If not, a cool thing to do is to buy a duplex and rent out the other side. This person in turn will cover your whole monthly mortgage payment with their monthly lease, or at least most of it. This way, you will have little no monthly mortgage payment, and you can just save the income you will make from your current job or most importantly, the job you will be receiving. Hope this helps! 

@Edward James smith

If you find a multi with tenants you could use a percentage of the rent roll as credit toward your income. I did this with a 4 unit out of college but i had a full time job. The first bank told me no, in between looking for another lender i sold my car and made my DTI better and was able to get the loan. Have you calculated your DTI by the way?

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