Quick Newbie Questions
I called my credit union, Navy Federal and asked them some specific questions about their mortgage programs. Here is what I found out:
1. Only a SFH qualifies for 100% financing.
2. 100% financing can't be used for investment properties.
3. There is no length of time that I would have to live in the home before I could rent it out.
4. Navy Federal does not give a mortgage for anything more than a 2 unit property.
So right now we really do not have enough money saved to do a down payment currently for the FHA or conventional loan. But we are buckling down to save more aggressively.
We want to get started in real estate by putting one foot forward. I'm tired of procrastinating, making excuses, and watching everyone else more forward.
Here are my questions:
1. Should we wait until we have saved enough money for a down payment on a multifamily or just purchase purchase single family home as our primary residence with 100% financing?
2. If yes, should we fix and flip this home to make money for the down payment on a multifamily, or buy and hold for income?
(which this could also help to save a down payment for the next property and continue with building equity and bringing in month income.)
3. Lastly, after purchasing a property, where do you get money to fix it up? Credit Cards? Personal Loan, Extra money from personal income?
Thanks in advance for all suggestions and advice!!
Most Popular Reply
I agree with what Julius and others are trying to tell you. With all due respect for Brandon Turner, just because you can buy with no money down doesn't mean you should. No money down isn't the same as having no money. What happens when the AC breaks, if you have a vacancy should you buy a multifamily, or your car breaks down?
Consider yourself in the preinvesting stage. Save up, get your expenses in line, and continue reading and learning.
Knowing when your not in a place to buy is as important as finding the right deal.