FHA home, need advice

FHA home, need advice

Leesburg, VA · Member since 2016 · 44 posts · 2 votes

Hi, I bought my first home with an FHA loan in April 2015. It is a split level home. The house needed some work and still needs to be updated but the house is built well and looks fine inside. I added a kitchen and room in the basement and am currently renting the basement out as my wife and I live upstairs. I have no debt and about 4 months of savings for my emergency fund. I bought the home for $305k and similar homes are selling for about $385- 395k in my neighborhood. With that said, I would like to get advice on how to best handle this property. I have thought about selling it but my goal is to buy and hold rental properties. However, it seems that if I sold the property I could get capital to start investing and still have money for a primary residence as well as investment money for something else. If I was to keep my home as a rental, how could I get in position to buy another rental property with no money for investment? I live in Loudoun County. Thanks.

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  • Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    @Christopher Nerio there is a wave of buyers predicted to hit the market in 2017. This will cause even more competition for the already low inventory of homes on the market. This is a good thing for sellers as it will drive values up.  

    So I guess you have to ask yourself. What is more important, getting cash to start investing as you outline above, or keeping it as a rental. Whichever is more important to you will probably be the best route to take.

    In addition, if you have not connected with an agent, I have written a blog post on the subject that will help you sort through the haystack of agents in the area :)

    Click on the link below to give it a read:

    https://www.biggerpockets.com/blogs/5868/52724-im-...

  • Leesburg, VA · Member since 2016 · 44 posts · 2 votes
    9y
    Hey @Brandon L., thanks for your feedback. Yes, I would like to buy and hold so I will most likely use the equity and use a HELOC to purchase a rental property. I also enjoyed your blogs. Good information on them, thanks. I know what I will be looking for as I build a team.
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