What should my brother's first property be?

5 Replies

My little brother is pre approved for 140k FHA loan. He's looking for an investment. He makes decent money and travels for work a lot. He's not looking to stay in the corporate world forever so he's looking to buy as many properties now while financing is cheap and he can actually get it. I think he should buy a multifamily preferably triplex or four-plex if possible with a FHA. In a year buy a duplex or single family with conventional (unless he has the money for 15% down on a tri or four-plex). He has student loans which he should have paid off in 5yrs (he puts a lot towards them monthly). At this point he's not looking to be a full time investor, but understands how powerful some rental property can be.

Agree with my ideas? Have others? 

I would agree with you. A 4-plex or 3-plex would be a good start. Since it is FHA he will have to live in one of the units. But it would still make for a great deal!

@Colin Smith Thanks.  It'll be a primary for the first year so he will live in one of the units anyways.  From our understanding he could rent our his unit for a day or week (not permanent) while he is out of town using airbnb, any opinions there? 

@Adrian Smude

I personally don't have any experience with airbnb so I would be the wrong person to ask about that. It certainly isn't a bad idea, however, I'm not sure that would be something I would want to do with my primary residence. I would think your primary residence may have high valued possessions in there that could easily be swiped. Plus there would be the headache of coming home from your busy trip to reclean your home after someone has been in there and prep it for the next one.

How do you qualify for an FHA loan if you don't mind me asking?

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