Updated about 10 years ago on . Most recent reply
Newbie first time home buyer.
Hello BP,
I am looking to invest in my first house using a first time home buyer loan. I am approved up to $175k I need 1.5% down payment. My question is should I go for a more expensive house or go for a fixer upper? Ideally my mind set is to rent out the house. But would also consider selling it. Just looking for some cash flow and a nice ROI on such a small investment.
Thank you in advance for any help.
Most Popular Reply
I always buy for the deal. As you said, you don't plan on being there forever because you might want to rent it or sell it. I think timeframe is an important factor when thinking about this. Think and appreciate what goes into a fixer upper. Will you live in it as you fix it up? What type of return would make this ordeal worth it? What do you want to do after this goal is completed, whats next? Either way, for me, I buy low (not a pig though) to hit the highest return possible.. Something that will make me money if I rent it, live in it, flip it, or whatever (exit strategies)... I will know how long I plan on holding onto the property before I purchase it though. Thorough planning helps me a lot. Awesome that you have financing all ready for you!
Good luck!