Marengo, OH · Member since 2016 · 16 posts · 4 votes
hello all,
I just have a few beginner questions. My wife and I are currently 27 years of age and looking to buy our first home with an FHA loan. Our plan is to buy a multifamily with the FHA and live in one of the units. We currently are pre approved for an FHA loan. My questions are these
Is this a good plan?
Where should I start?
What do I need to start?
Any advice would be greatly appreciated thank you for your time.
Investor · Cincinnati, OH · Member since 2015 · 90 posts · 44 votes
10y
@Justin Priestly this is a great idea. I'm 29, and my wife and I did this exact plan at 26. We are moving into our third place this summer.
my general thoughts
-You can get a duplex, triplex, or quad. I would focus on a triplex or quad, since that will cover more of your costs. If want to live in a property that "looks like a home" you'll probably have to stick with a duplex or triplex.
-Find a real estate agent that works with first time home buyers. They will understand FHA. If they are experienced enough, they will have a lender or broker they'll refer you too.
-I'd look for a good buyer's agent, and a mortgage broker to work with (this has been my experience, and it has worked).
-Look at MLS, drive around the areas you want to live in. Also figure out what type of tenants you want - and what price you are willing to pay. This will determine which areas you should investigate. Living on the edge of an "A" area is a good strategy, you'll pay less of a premium and with the right marketing strategy you can get the same type of tenant profile.
Investor · Cincinnati, OH · Member since 2015 · 90 posts · 44 votes
10y
@Justin Priestly this is a great idea. I'm 29, and my wife and I did this exact plan at 26. We are moving into our third place this summer.
my general thoughts
-You can get a duplex, triplex, or quad. I would focus on a triplex or quad, since that will cover more of your costs. If want to live in a property that "looks like a home" you'll probably have to stick with a duplex or triplex.
-Find a real estate agent that works with first time home buyers. They will understand FHA. If they are experienced enough, they will have a lender or broker they'll refer you too.
-I'd look for a good buyer's agent, and a mortgage broker to work with (this has been my experience, and it has worked).
-Look at MLS, drive around the areas you want to live in. Also figure out what type of tenants you want - and what price you are willing to pay. This will determine which areas you should investigate. Living on the edge of an "A" area is a good strategy, you'll pay less of a premium and with the right marketing strategy you can get the same type of tenant profile.
This is a good place to start. Check these two books out and come back with more questions. Living in your first rental as a landlord, to me, is the best way to get started.
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
10y
@Justin Priestly This is a great place to start. As an agent I help first time investors do this all the time. A fellow BP member is closing on his first tri-plex next week using an FHA loan.
Make sure you understand all the costs that are involved with being a landlord and make sure the rent will cover your expenses plus some. The plan is to make sure this is a good cash flowing property once you move onto the next not just to live for free today but you have to plan for tomorrow as well.
Marengo, OH · Member since 2016 · 16 posts · 4 votes
10y
Thanks Jake. My plan is to live for free in one side and keep my day job to put money into savings. Those savings will be "buisness money" if a repair comes up i will have it available. If a repair doesnt come up it will be put towards my next property. I have a solid background in residential construction. I can fix most things that arent an emergency myself to keep cost down. I also know people i could call if i'm at work and there is an emergency with the tenant. Is this a solid plan?