First time buyer, with a first-time offer!

3 Replies

Hello all!

I guess I'm finally ready for my BiggerPockets debut! Just submitted my first ever offer on a REO sfh that I intend to live in and rent out parts of. Small steps! This will be the first house I ever own (if the offer goes through) and I went in looking specifically for features and a layout that would allow me privacy between my living space and the rental space, and I think I've found it. Wish me luck :)

I offered 73% of the list price; I've been warned that banks don't go below 90% in this, let's see I guess? The worst that could happen is the offer is rejected and I'm back on the market!

Funny story about BiggerPockets (wow you guys are an OLD community!)...I actually found BP in high school and got incredibly hooked on the idea of investment properties...unfortunately no capital and, honestly, the attention span of a goldfish at that time so it never panned out beyond that. Many years later, I'm a fully-functioning, working adult...woohoo! First step: get a stable job (check!) Next step: invest! and that brings me back to BP! How exciting.

If this house doesn't work out, I've got my eye on another property. Same plan, go in at 73%. If this house *does* work out...I plan to get it cleaned up and ready for renting within a month...and I'm considering refinancing to get the other property. Is that how it works?

Updated over 1 year ago

One more question regarding "earnest money"...I'm getting mixed information about this on the net, but basically my realtors told me earnest money (em) is required and is typically 10-20%. They also told me that a down payment is not required. Is this true of REOs? I haven't seen anything verifying this online...

@Waf Za  

Target of market properties. Cut out the agent. Get directly in front of sellers. Rather than purchasing SFR'S for rental income, look into Multifamily ( 5 unit and over) While drop capital into a SFR? What happens when your tenant moves out? Empty house. No cash flow won't be pretty.

@Christopher Charles , Hey, thanks for the feedback! This is my first time so I think I required some realtor-hand-holding lol. I'll try direct-to-seller for the next property! If this deal doesn't work out, there's a multifamily on the market, so let's see!

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