Newbie from Connecticut: Any advice on starting out??

Question

Hello All,

A little background about my self:

I have been doing a lot of research (Books, BP, Podcast, etc.)  and I feel that REI is the best step for me to make passive-income. I have been looking at buying a rental property too start off with. I've been out of college for a couple months and I feel that the best start for me should be either a FHA loan or 203K loan due too the lower down payment.

I would just like to hear of some ways other people started out and maybe some other strategies that you've used to start investing. Any advice is welcome!!!

Account Closed · Answer

Welcome to the site Jahmel R. !  Looks like some other folks have already given you some great input on the 203k product.  Good luck on your investments, don't forget to reach out with any other questions.

Account Closed · Answer

@Blake Williams

I will make sure too like into the CHFA, I never knew that CT has their own program.

Account Closed · Answer

Wow!! Thank you all for the great advise!! I will make sure to use those ideas when purchasing my first rental property (Hopefully within the next 3 months!!). I'm currently still doing some research on the market and seeing where the best place for me to buy is. I will definitely keep everyone posted on my progress in the future.

Account Closed · Answer

@Michael Noto Thank you! It's always good to see someone familiar to your area. I definitely would like to pick your brain and gain some insight on your thoughts of starting out if you don't mind.

Griffin F. · Answer

Jahmel R. Welcome, from another CT'er..

Other than gathering knowledge here on BP, networking in your local market with other investors and learning good/bad markets and specific neighborhoods you're interested in.

CT has investor meet ups in Fairfield and Rocky Hill - along with CT REIA where you can meet many local investors.

Action creates opportunity. Good Luck

Raymond B. · Answer

@Jahmel Rollins,

Welcome to the Best Real Estate Site on the Net.

It is always nice to see another Ct.,  Resident in the forums.

Click on the “learn tab” at the top of this page, and you could be spending many hours on the 	Information that is available.

Raymond

Blake Williams · Answer

Hi Jahmel, I'm in a similar situation.  Recent college grad and CT resident looking to begin investing.  As long as you're looking into an FHA loan, you might as well look into CHFA since you're from Connecticut as well.  You might be able to use their downpayment assistance program so that you can use even less of your own money on your first deal.  That's what I'm trying to do as well.

Jonathan Makovsky · Answer

Welcome @Jahmel Rollins !

Sounds like a great plan, just be sure to budget for some of the more overlooked items in your projections, like vacancies, property management, repairs, and cap-ex (i.e. when larger items break).

Looking forward to seeing you around the site and CT.

Emily Du Plessis · Answer

Welcome Jahmel! Congrats on deciding to actively pursue investing in rental properties.  As an investor myself, I truly believe rental property can be a great way to invest your money.  In terms of the two loan products you mentioned both to them you would have to buy as a owner occupant, meaning that you must live in the property first.  If your plan is to  buy a property and live in it first so you get the lower down payment, then move out later and rent it then both of these loan products could be a viable option.  The 203k loan allows you to roll in some rehab to the property, both structural (203k) or cosmetic (203k streamline).

If you're looking to buy a property as a straight rental property then you will have to look into conventional financing instead.

Hope this helps! Best of luck!