First Investment Property for a beginner - Recommendations?

[Eldrick S.]

Hi B.P., I am new to real estate investing and I'm wanting recommendations of what type of property would be good for a beginner investor? I am located in Dallas, TX and currently looking around Dallas to Houston area. I am considering starting out with mobile homes to buy, hold and rent out to tenants. Do you think this is good to start out for a beginner or would you say a different property type would be better to start with? Any advice is appreciated.

[Ozie Jackson]

If you are a first time home buyer I would consider purchasing a duplex or four unit building, living in one unit and renting out the other unit(s). This has 2 advantages. 

One is anything under 5 units and you can still qualify for low rate FHA financing and only 3% down payment, just like if you were buying a single family home. Second, have tenants pay your mortgage while you save your salary to invest in other properties. There are other advantages as well.