First time home buyer but with investor mindset

Phoenix, Arizona
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First time home buyer but with investor mindset

Jimmy Rojas
Member since 2020 · 164 posts · 45 votes

I have good credit, financially in good position, no debt (at all), have enough saved for down payment ,i been looking at homes recently but gave myself a lil break , seems like houses atleast in Az are sitting and forcing the price to go down and with that investor mindset i most times offer up to $30k b elow listing, I put some offers on homes, some i got accepted i just didnt pull the trigger as im also worried about being tied down to a mortgage, right now my rent is a fraction of what my mortgage would be if i pulled the trigger on any of them homes.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3h

If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

Good luck with whatever you decide to do!

[email protected]248-209-6824
Logical Property Management4.9465 Reviews
WebsiteView Page
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    22h

    @Jimmy Rojas

    i am not following this. you had offers accepted but didn't pull the trigger? what does that mean?

    the best way to start investing is with a house hack. and it's not a cash flow strategy, it's an equity building strategy.

    i hope that helps

    0Reply
  • Nathan Shelby
    Rental Property Investor · Oxford, MS · Member since 2019 · 12 posts · 1 vote
    21h

    I’d love to know where you’re getting accepted offers 30k below listing lol.

    I agree with the first comment. House hacking is the way to go to get to started.

    0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 239 posts · 90 votes
    21h

    With your credit, savings, and no debt, you're in a good position to explore different financing options. I'd focus on finding a monthly payment you're comfortable with rather than just getting an offer accepted.

    Have you compared different down payment scenarios to see what would make the monthly payment work for you?

    0Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 164 posts · 45 votes
      17m

      Right now im feeling comfortable, paying a $1k - mortgage, here in Az that will get you a condo or maybe a townhouse.

      0Reply
  • Sal Bossio
    Member since 2026 · 5 posts · 0 votes
    18h

    Jimmy, being nervous about getting tied down is honestly a healthy thing to think about before you sign. One way to look at it, the mortgage is bigger than your rent but part of every payment is going to principal, and if you ever move the house can become a rental. So run it both ways. What's the payment if you live there, and what would it rent for if you moved out in 2 or 3 yrs. If the rent covers most of the payment you're not really stuck.

    Also since you'd be owner occupied you can put a lot less down than an investor would and keep more cash in the bank. And when homes are sitting, a lot of sellers will pay toward closing costs or a rate buydown. Ask for that instead of only knocking 30k off the price, sometimes the credit helps your monthly more than the price cut does. Have your lender run both versions side by side.

    Heads up I'm a loan officer with Barrett Financial, so that's just what I see from the lending side here in AZ.

    0Reply
  • Joe Piccirello
    Lender · Peoria, AZ · Member since 2026 · 33 posts · 10 votes
    18h

    Jimmy, the rent vs. mortgage gap is the part worth putting real numbers on before you write another offer. Take one of the homes you almost bought and compare the full monthly payment (principal, interest, taxes, insurance, and any HOA) against your rent, then factor in the equity you'd build and what repairs usually run. If the gap still feels too big, a middle path that fits an investor mindset is a place where part of it can be rented out, like a room or a casita, so someone else covers a chunk of the payment. It also helps to get quick quotes from a couple of lenders before you're under contract again, so you know your real numbers and you're not deciding on a deadline.

    0Reply
  • Jimmy Samaha
    Staten Island, NY · Member since 2013 · 118 posts · 55 votes
    17h

    One thing I don't see mentioned is how long you'd realistically stay. Buying and selling both cost money, so if you move within a couple of years, renting can come out ahead even with the equity you build. Run the full monthly cost on one of those homes, taxes, insurance, and maintenance included, and compare it to your rent over the number of years you'd actually stay. Also keep a solid cash cushion after the down payment, since you'll be the one paying for the roof or the water heater now.

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 566 posts · 242 votes
    15h

    @Jimmy Rojas You're in a great spot with good credit, no debt and savings for a down payment, and it's smart that you're not rushing. Feeling nervous about a mortgage isn't a bad sign. It usually means you're taking the commitment seriously. A lower price is only a good deal if you'd want to own the home anyway, so I wouldn't buy just because you got a discount. When you compare to renting, look at the full monthly cost of owning, including taxes, insurance, maintenance and HOA fees, not just the payment. Also factor in how long you expect to stay, since buying tends to make more sense the longer you stay put. If your rent is far lower, the difference can keep growing your savings or investments while you wait for the right property. If you do make offers, be careful about backing out after one is accepted, since you could lose earnest money depending on your contract's terms. It may help to only offer on homes you'd truly be happy to own. Just keep in mind this is my general take and not financial advice, so run your own numbers with a lender or advisor. Whatever you decide, you're making it from a position of strength.

    [email protected]
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    0Reply
  • Andrew Palumbo
    Technology · Member since 2026 · 5 posts · 1 vote
    14h

    The mortgage being way more than your rent is normal, and it's not really the right comparison. Part of every payment is principal, which is basically you paying yourself.

    The fairer comparison is the money you never get back: interest, property tax, insurance and upkeep. Add those up for a year and compare to a year of rent. If they're close, buying makes sense. If they're way higher, keep renting and don't feel bad about it.

    And if you're nervous about being tied down, that's one more reason for the house hack others mentioned. Rent from the other unit or a roommate makes it a lot easier to sleep at night. It also means you could move out and keep it as a rental later instead of having to sell.

    0Reply
  • Dan Duenas
    Lender · Member since 2026 · 54 posts · 28 votes
    10h

    The hesitation is the data, not a character flaw. A few honest filters: (1) How long will you actually stay? If it's under ~5 years, transaction costs usually eat the 'deal' — even $30K under listing. (2) Run the real monthly number — mortgage, taxes, insurance, HOA, maintenance — against your current rent, not just the mortgage. If the gap wrecks your savings rate or your freedom to move for work, renting isn't losing, it's staying liquid. (3) Being tied down is a real cost at your stage: a mortgage limits where you can take a job and how fast you can pivot into investing. Buying right is better than buying now — the next $30K-under deal will come along, and you'll pull the trigger when the payment and the timeline both make sense.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3h

    If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

    I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

    To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

    Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

    I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

    I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

    After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

    While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

    Good luck with whatever you decide to do!

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
    1Reply
  • Brandon Harwood
    Property Manager · Chandler, AZ · Member since 2026 · 11 posts · 0 votes
    8m

    Jimmy, I'm with Renters Choice Homes. If keeping the home as a rental is your backup plan, I'd test that separately from whether you can afford to live there. Start with comparable rents, then account for vacancy, turnover, repairs, larger replacements and management alongside the mortgage, taxes, insurance and HOA. Rent covering the payment doesn't necessarily mean positive cash flow. Which Phoenix-area neighborhood and home type are you considering?

    0Reply
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