Not owning a home won't disqualify you from getting a mortgage on a rental. There something else wrong with your income, credit, job history or debt/equity situation. Just ask the lender(s) they'll tell you.
The cheapest way into real estate is to buy a property to live in since you can do as low as 3.5% down. You can either do a live-in flip (fix it while you live there to resell or refi), house hack (have roomates) or buy a 2-4plex and rent the other units while you live in yours. After 1 year you can do it all over again, and again, and again. Its slow, safe and works and builds up your credit, portfolio and gives you experience.
I house hacked a 4 plex. I put 3.5% down and used an FHA loan. I borrowed the entire down payment from my TSP (401k equivalent) by using a TSP loan. The result was no money out of pocket.
@Shane Pawich You may want to talk to different lenders. Each one has its own criteria. If you can't get a loan, ask why. And work on improving your situation. Good luck!
Unless I am terribly mistaken, I believe Bill E is correct and you can only have one FHA loan outstanding at any time. However, there are other low money down programs available. I believe I purchased my duplex with 5% down. As noted above, speak to various lenders (banks, credit unions, mortgage brokers , et al...)
Okay I’m sorry let’s me rephrase sorry guys, i can get approved for a mortgage with no problem , but if i go to a sheriff sale i need money in hand Correct? So i was applying just for a personal unsecured loan since i don’t own my own house they would not approve me. I tried to put my truck as the Lien rather then a house and they weren’t having that to do. So if i just buy the home with a mortgage do i have to live in i the to rent it out ? I was under the impression if i took out a mortgage i could not rent it out?
Sherrif sale is a whole other deal. Yeah you’ll need cash for that. You're going to need to talk to probably several hard money lenders although I have no idea if they’d lend for something like that.
There are several different types of mortgages. Think you have a little bit of research to do. Luckily bigger pockets has lots of good info to get started
@Shane Pawich As @Tyler Herman said, if you are going to auction you will need money in hand. I work with Investors who when strapped for cash do use a hard money lender, but unless you pay it off quickly, it can be a very costly proposition. You can househack with possibly a low down payment but you really need to talk to a "creative" lender. Feel free to reach out to me further. Thanks...Gary
And sheriff sale in PA for a HML can be tricky because Deed isn’t always recorded before monies are due, which means you can’t get a loan.
Private money or partnering is your best bet
Have you looked into mobile home investing? I have heard that it is a good alternative if you have little money 2-5k to get started. There is a youtuber who does just that his channel is called john Fedro.
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