I am looking to make my first purchase within the next 6 months. This is going to be my first real estate purchase. Has anyone taken advantage of of first time buyer loans such as FHA loans maybe a 203k or something? My thought is to buy a property, looking at condos (because of my budget) but maybe a house if the price is right, fix it up while I am living in it for the year then sell it or rent it out at that point. My thought is that if I could sell it without a profit but I can make enough to cover my holding and renovations costs then I would have had free housing for a year which allows me to save up more for my next deal. Or if selling is not an option, I could rent it out.
Just curious if anyone has done anything like this before and if not what is your opinion on this strategy.
People do this all the time, it's a great strategy. I bought my primary residence (SFH) with the intention of renting out the rooms to help me pay the mortgage. Prices have gone up significantly and If I sell soon, it would make one hell of an accidental flip :)
We have no idea how the market will be a year from now though. There is no 100% "guarantee" that you'll make money on it. I like that you have a backup plan to rent it out though. Check the market rent and make sure it would make a good deal as a pure buy & hold investment.
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