Hi i am still looking to buy my first property. I dont have any money to put down so i am going the " first time home buyer" route. Im looking to purchase my first home and still become an investor. I want to buy a multi- family and being a 1st time buyer i want to take advantage of that program, but at the same time want to get a single family to raise my 2 year old in a house. I know buying a single family would make it tougher to get a multi because i would need to come up with 20% down as apposed to buying a multi as 1st. time buyer and living in it for a year or so with not having to put down 20%. do i just get the multi and live in it for a year then step down to a 2 family and down to finally my 1st single family?? would love to hear which route i should go. thanks
Even buying as an owner-occupant, you usually need to put "some" money down, even if it's 3.5%. Do you have a special program you're using where you can put 0% down?
well dawn i was thinking if i went ahead with the single family first i probably would go the USDA loan where its 100% financed. the area i was looking fit the criteria of rural area, and i seem to qualify on what i earn working full time. what are your thoughts??
If you qualify and like to area that is also eligible, why wouldn't you go for 100% financed deal? Make sure you read the fine print, but it sounds good for a SFH. If you are eligible for a MF, then go for it, but be prepared for costs beyond the mortgage/repairs.
It's great you are considering different options and trying to evaluate which one is best for you and your family. If I was in your place, I would first sit down with a lender and thoroughly discuss which financial programs are out there for me. I would get pre-approved and ask to be provided with all the information in numbers. This is essential in terms of being realistic of what type of properties you want to be looking for in particular. Start working with a real estate agent (unless you already have one) and ask them to set up a couple different automatic mls searches - one for SFRs and another for multi-units within your price range - and start comparing what's in your area. When making your decision, try to pick the option that will provide the highest leverage for you. If that means, you need to live in a duplex or triplex and your tenant(s) will pay for your mortgage and even help you save some money on a side - do it. Depending on what market factors work best in your area, choose the property that will give you higher chances of re-investing your money faster. I understand that you want your kid to have a bigger and nicer home to grow in, but there might be other alternatives to that that might actually secure a better future for your family.
Good luck with everything !
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