Here's my current situation:
- 40 yrs on earth, 0 years owning or investing in real estate
- 580 credit score
- South Florida (Miami Dade County and Broward County) market
- No considerable cash savings
- 90K + w2 and have a spouse with w2 as well
- Renter with no mortgage
Here are my questions:
- Does flipping makes sense for me or is BRRR the way to go?
- Should FHA loan be my first financing strategy (given that I have no current access to private money)?
- Should I just sit on the sidelines until 2019, build up my credit score and save up as much cash as possible before even thinking about deals?
You could house hack with a duplex or flip until you build up cash reserves to BRRR. FHA or Fannie Freddie would be a good start. Find out what you can prequalify for. Keep educating. Good start.
It really all depends on what strategy aligns with your overall goal. I started my REI journey here in Miami about 6 months ago and I'm currently finishing up my first rehab with the goal of creating a portfolio through of rentals through the BRRRR strategy. Here in South Florida a lot of people will tell you that it's impossible to find good cash flowing properties. I would disagree but it does take a lot of hustle. Think about what your strength and weaknesses are and what will move you to your long term goals. Best of luck and welcome to South Florida investing!!
House hack for sure. 5% down on up to a 4 unit place, live in one of the units and fix it up. As people move out, fix those up and rent the one you were living in for more. Do this for a couple years, then move to the next one... or retire.
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