First time investor with Analysis Paralysis

4 Replies

Hello all,

Looking for advice on what loan options i should consider for my first real estate property. I'm looking for a Single family home to hold and rent, no more than $130k. I have the following to offer a bank:

  • $130k home that is paid off
  • $25k cash
  • Military Veteran
  • $130k Gross household income w/ Income to Debt 1.5%
  • $50k can borrow from Retirement
  • 834 credit score

I'm really not interested(can be convinced) in moving and renting my place out or a HELOC but i'm just curious what an experienced investor would recommend a newbie with the current setup. Thank you in advance.

@Jose Torres With this amount of cash, equity, and credit score you can get any type of loan product from any bank. You can even skip the bank loan and be the bank with that much equity and cash. 

If i was you, I would skip the SFH and move straight into apartments or at least 5-12 unit properties. or partner with other folks and go after a larger complex.

my 2 cents... good luck

@Jose Torres ,

Since you are prior military I assume you would be borrowing from your TSP. I don't recommend that because the opportunity costs are much higher than people think.

I know you said that you are not interested in a HELOC and I'm curious why, but whatever. If I were you, I would take a HELOC out on my primary and use it combined with the cash to BRRRR or fix and flip for money to put down.

With that kind of income and no house payment hopefully you are banking some serious dough as well. I would be maxing out my retirement accounts and stashing some money away for investing.

I would start talking to banks and mortgage brokers to see what options they have available. With what you listed above, I think you'll be able to get a pretty good loan.

@Jose Torres start talking to lenders ASAP. You seem like the IDEAL candidate for extremely favorable loan products. 

As @Ibn Abney suggested, I'd consider MFH or commercial MF, you could definitely do it, if you prefer. But, of course, starting small is a great way to learn (that's what I'm doing)

In any case, good luck. I'm sure you'll find that receiving financing is a lot easier than you expect, just make sure to shop around and negotiate!


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