Good morning BP community!
I'm looking to get started on my REI journey, and have been extremely pleased with how responsive all of the members of this forum have been. I've set up several meetings and plan to attend some events in my area this week. I've also listended to all but maybe eight of the BP podcasts and have a conceptual understanding of different strategies and options; my background is in financial analysis and corporate valuation. Here's my situation:
I am currently working as a 1099 employee, but I haven't been here for the two year time frame that traditional lenders require. I don't technically qualify for FHA or conventional loans, so I'm hoping to explore potential other options for financing, perhaps portfolio lenders at smaller banks, perhaps a partner that would like to team up on a property?
I am looking for buy and hold type income properties, and have created a relatively simple analyzer to screen potential options. I have $10-15k and time on nights and weekends. Not afraid to get my hands dirty, if necessary, but I'm a little concerned that I will get in over my head when it comes to estimating more major renovations.
Potential wholesalers/partners/portfolio lenders in central/southern NJ or eastern PA would likely be my next step, if there are any recommendations. Definitely open minded and welcome the advice on the "Best way to start out investing with $10k."
Thanks for your insight.
@Nicholas Lanni you may want to start out by answering a few questions either for us or for yourself if you haven't yet considered them.
1) Where are you looking? The price of the properties could impact your next move.
2) What kind of property are you looking for? SFR? Duplex? Triplex? etc. If bigger than an SFR then the question of whether you're planning on house hacking applies as that can affect your financing options.
Finding out how much you want to buy a property for allows you to trace back how much you need to acquire it which could help guide your decision as to whether or not you should look towards getting a partner or not. Deciding you really want to buy a fourplex in NY for 2mil versus an SFR in central NJ for 120k can drastically change your path forward.
@Odie Ayaga Thank you for being the one and only reply haha.
1) I am open to any markets where there seems like there is good yield (which I think is called rent/purchase ratio), but I've mostly been focusing on the area near me (Mercer County and Burlington County, New Jersey). Also looking at Bucks County, PA.
2) I am not opposed to SFR, but would prefer MFR. I would potentially house hack, but at this point, I would prefer the extra income. Additionally, because I am recently a 1099 employee, I don't qualify for conventional mortgages or FHA loans, so the appeal of house hacking isn't as applicable here. I'm trying to be realistic in the properties for which I look, where I would not have enough to bring to the table to partner up on a fourplex in NY, but central NJ for low six figures would be much more palatable.
Thank you for your insight, and would still love to meet in the area.
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