Newbie investing idea
I had this idea awhile ago just don't know how well it will work as I am new to real estate investing and would like to get your thoughts. I was thinking of using FHA loans to get into houses with a cheaper down payment and then living in them for a year or two and then using the equity I've gotten in the house to refinance it to a conventional loan then renting that property out and just getting another FHA loan to just repeat that process to acquire rental properties. I would appreciate all of your inputs on this thought thank you for your time.
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Dante this is called House Hacking. BP has a great book on the subject to help in you education.
Be sure you understand how to estimate rent, costs and reserves to try to assure you have a positive cash flow on your first deal.
Save your money and rents to make your net purchase after living in the duplex at least a year and several days from that first closing. I think you can then get another FHA or look in Dept of Ag loans which have similar good deals on down payment.
Cheers, Buddy