I'm sure this topic has been gone over a lot but I couldn't find any, so how did some of you or how would you get into buying properties with not having a lot saved up? I have been pre-approved for 70k loan with covering the 20% down payment from relatives just not sure what the best way to get the first property bought, the other option I thought of was trying to get a small personal loan to buy a cheaper rental house ( around 15k) and start from that but not sure if that would work or be a bad idea any help would be appreciated
I'm wondering why you wouldn't try to get qualified for an FHA owner occupied loan with only 3.5% down? Then you could use some of the money from relatives for some renovations. I would personally target a duplex or triplex and live in one side, while renting out the other (house hacking). Then you could save some money for a down payment on another property. After a year, you could refi the current property into a non-FHA loan and get another low down payment FHA loan on another property.
what about if I currently have a house that i live in anyway to get around a duplex or triplex if i dont live in one unit as my main residence and still get to use the low down payment?
Not sure exactly what you are asking but there is not a way "around" the requirement for owner-occupancy. You either live in one of the units (and qualify for the low downpayment) or you don't (and put down closer to 20%).
Generally, no. The FHA 3.5% down payment is only for owner occupied properties. If you currently have a house you should be able to purchase a duplex, tri or quad on the FHA so long as you intent to move in, you will then either have to sell or rent out your other house.
I agree with @Hattie Dizmond house hacking is the way to go when you are just starting out. If you are looking at a $150k quad, then your DP is only $5250, any should get enough from renting out the other units to cover the mortgage and then some. Not to mention that could be one of the cheapest educations in real estate possible.
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