I am new to investing and hoping to invest in my first property in or around the Boise, ID area within the next 3 months. I have very little capital, good credit, and a continually growing REI education base. The market is especially hot here in Boise, but I know there are always deals out there.
I am interested in the BRRRR strategy, as well as flipping, but I am hoping to gain some narrowed insight on what strategy and niche would be best to start out with given my circumstances. Any advice??
Hey Jordan, Congrats on wanting to get into REI.
What do you mean by very little capital? Do you have enough for a 3.5% down payment with an FHA loan?
Do you currently rent? Have yo considered House Hacking?
Have you read @Scott Trench 's book Set For Life?
I'm making some assumptions, but if I can give any advice, it would be read Set For life, commit to a plan with a deadline and read "The One Thing" by Gary Keller. Then follow a combined plan of The One Thing and Set For Life with deadlines/goal dates.
The last thing you want to do is look back at this moment a year from now and realize you are in the exact same financial position as today.
The BP community is great for education and advice but taking action is the best thing to do. I know from inaction.
Hi @Jordan Campbell - It was so great to connect with you at the meet up the other night. You are definitely on the path to taking action! @Scott Hibbert 's recommendation of Scott Trench's Set for Life is another book I didn't think to mention. Definitely should be a must read for ya! I am excited to see where your journey takes you..as I know you'll be successful.
either house hack or continue to save for a down payment if you want to invest in buy and hold. If you want to flip, learn a lot about rehabs and the prices of common rehab items, then start talking to hard money lenders and get your financing sorted out.
1.to notify people when replying type the @ symbol then the first few letters of the person's name and select them from the drop down menu (@Mindy Jensen I have seen this confusion many times with newer posters)
2. I think that if you can't qualify for conventional financing saving up for the down payment for an FHA house hack may be a very good option.
@Aaron K. It turns out that the @ links do not stick around when copy and pasting, good things to know.
That is good advice, I believe that will be my best strategy unless I partner with a local investor. is the FHA 203(k) loan a good route for a home hacked "flip?"
203k can work but it is more difficult for flips because you need to live in the house for a year before moving or selling
Keep in mind there are greater risks with a distressed property particularly for your first purchase. The 203(k) can be costlier and more time-consuming than the standard 203(b) even if everything goes according to plan (and it seldom does). Just see: finally---closed-on-my-203k.
That said, FHA 203(k) loan can be a great tool if have an experienced 203(k) lender and experienced 203(k) contractor.
Whether standard FHA or 203(k), you may flip the property after home hacking one year. If you're in the Midwest region where appreciation is more limited, you may want to consider a buy-and-hold strategy for long-term cash flow.