Unemployed with $10,000 cash. Can I make something happen?
I'm out searching for jobs with my degree in Drafting & Design at the moment, so I don't plan on staying unemployed. I need a job to build my credit, so that I can get approved for a loan in the future.
In the mean time, I'm looking to owner finance a home with my 10K as a down payment, but do not know how much my fees are going to cost me. Also how fast could I possibly get a tenant into the home to take care of the mortage from the owner financing it to me?
Should I wait to get a job with an income?
Welcome to the site.
I would recommend waiting until your employed to buy a rental property.
Welcome to BP @Kevin Quang Nguyen . I think it is important to figure out your goals and how dedicated you are. The risk is huge but I'm a firm believer that with the right drive and focus one can achieve anything.
If you have $10k and you use $10k as a down payment where would other expenses come from (closing cost, mortgage, utilities just to name a few not to mention money to live on and some for emergencies)? Yes you can invest with $10k but it's important to map your goals and strategies before you start.
I would agree. You need to live, pay ongoing living expenses. You should wait to have a job and replace whatever money you are most certainly going to need to spend just to keep going on a daily basis. To attempt to push things just so, hurry to get an owner financing deal, hurry to get a tenant it, hurry to have food on the table. That will just prove futile I think.
You need time to relax, to evaluate, to seek out, interview and select a proper tenant and you need time to build up your cash reserves to deal with property taxes, maintenance, Property management if you are not going to manage your property yourself and insurance. As yourself are well aware you will also have to have transaction money to pay for your share of escrow fees, a HML will be charging you points most likely.
You are not ready yet. Take a little more time. Where will the money come from should the property you buy be in need of immediate repairs?
I agree with all of your responses, I'm in way to of a hurry to start. What I really wanted to do was find a motivated seller (owner finance) willing to take at least 5k down, and for the remaining 5k use that towards (mortage, closing cost, and repairs.) But I know that still will not be enough to cover other fees that might come up, especially repair cost.
I just feel like if I take my time, time is wasted. We are on this planet for a short time, and I'm willing to take those risk. If by any means I fail, I will take it as an opportunity to learn from it. But I'm still going to wait till I land a decent job with decent income.
Thank you again everyone.
Hello Fellow Mississippian, welcome to BP.
I would recommend waiting. Spend the next few months reading and learning as much as possible, if you haven't already. Your view might change on what you want in a rental property. Plus since you are looking for a job, it would keep you free to move anywhere in the country for a job. Houses can get expensive quick.
unless you are the next steve jobs or zuckerberg.. forget about real estate.
save your money get a RE lciense and start to make commissions
If I were you I would look for a hard-money lender who will finance your deal. Do all the initial leg work yourself. Find the right deal and get it funded with slightly higher rates. This way you save your 10k.
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