Want to buy a personal home and start a HOLD business at same tim

Want to buy a personal home and start a HOLD business at same tim

Atlanta, GA · Member since 2015 · 109 posts · 42 votes

So, my wife and I recently moved to Atlanta, Georgia. She has a really good job that she expects to stay atleast >5 years. I, on the other hand, am looking for a new job in Atlanta as I am currently commuting back and forth from Macon, Ga on a regular basis. I am extremely interested in real estate investing, especially the HOLD strategy as a way to supplement income for now. I have done tons of research getting to the point I need to take action. My wife would love for us to go ahead and buy a forever home for us. However, I wanted to buy a house maybe a year at a time with us living in them and making renovations before renting them out and moving on to the next property. We have come to the conclusion that we will start with a forever home and then try to buy different properties that we never live in. The problem is $$$$. We have enough for a ~15% downpayment on a decent house, but that leaves us with not much. I would have ~3.5% to make another downpayment for my HOLD strategy, but that leaves me with nothing to do any sort of repairs. Besides waiting on more money, what are some cool investment/financing strategies that we could use to make both of our dreams happen? Also, are there any good online resources to gather neighborhood information about different locations in Atlanta? Any and all information is greatly appreciated.

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Professional · Dunwoody, GA · Member since 2014 · 32 posts · 8 votes
10y

@Paul C. welcome to Atlanta. In my opinion thr best strategy in your case is buying your primery residance with 3.5-5% down and renovate it little by little, after 2 years sell or refi and have TAX FREE cash out!

I am

An avent working with investors, will be happy to help you in market analysis in metro Atlanta neighbourhoods. 

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  • Landlord · Jonesboro, GA · Member since 2015 · 65 posts · 17 votes
    10y

    @Paul C. Welcome to Atlanta. I bought my first home to live in using FHA with $100 down. Lived in itfor 4 years and fixed it, now we're renting it out after we moved. But we can't use another FHA unless we refi the first home. And FHA requires PMI so the mortgage is a little more every month. With the investment property most of the bank that I talked to wants 15-20% down. Please share if you know any 3.5-5% down lender for investment properties.

  • Professional · Dunwoody, GA · Member since 2014 · 32 posts · 8 votes
    10y

    @Paul C. welcome to Atlanta. In my opinion thr best strategy in your case is buying your primery residance with 3.5-5% down and renovate it little by little, after 2 years sell or refi and have TAX FREE cash out!

    I am

    An avent working with investors, will be happy to help you in market analysis in metro Atlanta neighbourhoods. 

  • Real Estate Agent · San Jose, CA · Member since 2015 · 172 posts · 66 votes
    10y
    Originally posted by @Kelli Huang:

    @Paul C. Welcome to Atlanta. I bought my first home to live in using FHA with $100 down. Lived in itfor 4 years and fixed it, now we're renting it out after we moved. But we can't use another FHA unless we refi the first home. And FHA requires PMI so the mortgage is a little more every month. With the investment property most of the bank that I talked to wants 15-20% down. Please share if you know any 3.5-5% down lender for investment properties.

    Did home prices go up in the last 4 years? If your home is worth 20% more after appreciation due to market conditions plus your renovations, then you should be able to get a conventional loan without putting any money in. You should also be able to get rid of your PMI even without doing a refi, if you think it will appraise for 20% more than what you paid 4 years ago.

  • Landlord · Jonesboro, GA · Member since 2015 · 65 posts · 17 votes
    10y

    @Gloria Mirza Yes my home is worth more now, but when I spoke to a lender about refi they want $4,000 for process/closing. And it would drop my mortgage by about $50-60. So I don't know if it's worth it. Maybe I'll talk to other lenders about it.

  • Investor · Denver, CO · Member since 2015 · 38 posts · 5 votes
    10y

    I've done similar in the past. Generally FHA has lower rates, so the mortgage/interest and PMI almost counterweighs the refinanced mortgage and interest (almost). The biggest benefit is that you've got the ability to get another FHA loan, and cashing out if possible.

    Another thought is to find a house that you can hack. What about a house that has a basement apartment that you can rent out to cover your mortgage. This will allow you save more to get you into an investment sooner than later.

    There are plenty of houses that can be had for under 100k. While saving, use this time to research areas, and find great deals. 

    Hope this helps!

    Kevin

  • Real Estate Agent · San Jose, CA · Member since 2015 · 172 posts · 66 votes
    10y

    @Kelli Huang you should shop around for a better lender. I would recommend some lenders but I think there are rules against that on this board. Typically you will pay around $1600 in lender fees. It shouldn't take you too long to make up the upfront cost with the money you save from PMI.

  • Stockbridge, GA · Member since 2015 · 42 posts · 12 votes
    10y

    @Paul C. I would consider buying a duplex, living in 1 side and renting out the other for at least a year (let your tenant pay your mortgage) and then buying your forever home and renting both sides for additional income. You can use a FHA loan and maybe a 203 if there are repairs needed. I'm trying to get my daughter to do that now as she looks to begin investing.

    Karen

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