Hello fellow BP members, my name is Taylor Cu. I'm 22 years old. I graduated from Loyola Marymount University with a mechanical engineering degree in May 2017. I currently work full time as a superintendent for a general contracting company. We specialize in retail and restaurants. I was introduced to real estate investing a couple months ago as I was searching for different options of passive income. Since then, I've read/listened to numerous books from BiggerPockets and listen to their podcasts all the time. My goal with real estate is to be able to take care of my family in the future and be financially free.
I am interested in being a buy and hold investor. Specifically in multi family properties. For my first property, My goal is to house hack a 2-4 unit property around Culver City, CA area (I'm going to be working in this area) using an FHA loan but with only $5000 saved up and the high market price, this poses a challenge. So now, I'm taking the time to network and educate myself. I went to my first real estate meetup. Turned out to be a meeting to try and upsale me on buying RENATUS. The day after, I decided to upgrade my BiggerPockets membership to pro! So now, I'm focusing on becoming better at analyzing deals and looking for positive cash flow properties, building my capital, and networking. I'm looking forward to get more involved within this community. I'm going to my first meetup tomorrow! I'm excited to learn more!
I do have some questions though.
1. From my understanding, I would need to have at least two years of income to qualify for an FHA loan. If I have a co-signer that qualifies for the loan, does that mean the total mortgage amount would be split 50-50? Would I need to pay for half and the co-signer covers the other half? Is it possible for two qualified people to combine an FHA loan to pay for a more expensive property? Or is there only one FHA loan allowed per property?
2. Has anyone partnered up for their first investment property? If so, how did it go? I could imagine it's a bit risky to partner with someone that doesn't necessarily have solid experience.
3. Any other useful tips/areas to focus on as a new investor with little capital?
Thank you! I'm excited to be a part of the Bigger Pockets family!
1. With For FHA you can use your college history as long as it pertains to your career. So you are good in that aspect.
2. You can't partner up with FHA. All borrowers have to live in the property unless they are your parents. FHA is meant for primary home owners, not a way for investors to get in on a property with a low down payment.
3. Save, save, save your money for that down payment. 3.5% down can be saved or gifted by your parents. You can ask the buyer to pay up to 6% of the closing costs to get into a property quicker with less out of pocket.
Thank you for the useful information! ah interesting. I did not know that I could ask the buyer to pay up to 6%.