My name is Chris and I'm somewhat new to BP. I have recently made the decision to set up my retirement around REI and am looking to make my first home purchase. This first purchase is going to be my home as well and my research has shown me that a multifamily property fits exactly what I need right now, being relatively young (22), being able to save money is at a premium, I have a private bartending entertainment business of my own along with 2 other bartending jobs for extra cash to try and put towards this first purchase and would love to be able to set up a living situation where my monthly living expenses are paid for by my other renters so I can truly begin saving heavily for my first buy and hold investment purchase. However, multifamily properties are significantly more expensive in the area that I live in (Rehoboth Beach, DE) and my concern is centered around being able to put together a down payment on a property much more expensive than a normal run of the mill starter single family home. What advice/tips/etc. does anyone have for someone with somewhat limited resources, young age, and jobs that banks may look at as somewhat volatile financially who is looking to make a larger than average first home purchase?
Thank you in advance for any responses.
@Chris Murphy welcome to the site.
my quick bit of advice is to get in touch with a mortgage broker- he or she will be able to tell you much more after looking in depth at your financial history. That will give you a ballpark idea of either what you can afford or what you need to do to get your finances in order so you can qualify for a loan. There are opportunities available to first time buyers as well- make sure you know what they are and the stipulations. Good luck!
Hey Chris, we bought our first property about a year and half ago and it was a triplex. We didn't know much at the time so I think we got pretty lucky. What really helped was that we were working with a very experienced mortgage broker. After looking at various options he recommended that we go with an FHA loan. This ended up working out and even though the property was listed at 275k they accepted our offer at 250k and we only had to put down about 3% so we found ourselves in an awesome triplex for under 10k. The only issues that we ran into were that FHA has its own inspection process and we had to do a couple of repairs before the loan would go through and because it was a triplex we weren't allowed to accept gift money. But we managed to get through those minor hiccups.
Yep, it's hard when you're self employed, and also when you have a tip-centric service job income. But you are thinking ahead, and starting early , and both of those are great. An owner occupied multi is a great way to start. Unfortunately in some areas multis are not common or are more expensive (in some areas they're everywhere and are the cheapo option). The advice above is great- figure out where you are in terms of getting a loan. There's always a way, though. Some people have had great success with buying a SFR and renting rooms to room mates. And then there are options like finding a seller financed situation- there's tons of threads on that on BP, you could do a search and have a lot of reading material.
Thank you guys all for your advice I will let you all know once I follow up on that advice
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