Here is our dilemma should we start to buy our first rental property but stay in our rental apartment? Here is the thing we don't have enough money to buy with the 20% so we thought that maybe we can start to buy with the FHA maybe a small single house live in for a year then move out and rent it , or buy a multifamily house live in one unit(in order to follow the FHA rule) rent the others then buy single house live in the rent it and so on until we can buy our dream house have somebody done this?? is this a Good way to start investing ? we been living in rental apt. for 10 years!!
Welcome to BP!!
REI is a math game:
Today you Pay $X in rent
You goal is pay less than that when you make your next purchase. There are 2 ways to do that:
1. Lower you rental payment
2. Make a profit on an investment
Look up "House Hacking" here on BP. The concept is simple, buy a property and reduce your current rent payment by using other people's, your tenants', money to pay most/all your expenses.
Your thinking is correct. Find a MFH that can be purchased for a minimal amount down, then rent the other units.
Make sure you look at the rental long term as well. Make sure today's house hack turns into tomorrow's solid investment. I.e. does it make good money once you place a tenant in the unit you occupied. The answer is generally yes, but don't make that assumption, do the math.
that is a good advice we usually don't do the math and now we know how important it is in this business we have a lot to learn! good think we found this place where we can find people with experience like you Thank You so much! ! Now we have to find the best MHA and then search for a good deal we are looking forward To start with this business
This sounds like a good plan. I am in a similar situation, however I have been looking for a multifamily for a while and I have come up empty. Deals seem impossible to come by in our part of the country and the taxes don't help either.
@Veronica Perez , I also like the plan. Honestly, I don't know why more first time home buyers are not using an FHA loan to buy MF property. It makes all of the long term sense in the world. Just be careful to not over pay today as the leverage will be high and there are cost associated with FHA loans are higher.
I agree. Get a multi-family home, live in one unit, and rent the others. I wish I started that way.
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