Investor · Milwaukee, WI · Member since 2018 · 16 posts · 8 votes
I am a young post grad looking to start investing in Real Estate. I am very interested in the multi family aspect of it, but let’s say I take the time to save up for a 20% downpayment on a $100,000 property. Would using $20,000 in my personal savings be the best choice on a rental property? Rather than find other avenues to buy it? Thanks!
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
@Nathan Simons, what about buying your own primary first?
ie. Much less than 20% deposit required for owner-occupiers. You'd still be eligible to buy up to a 4-plex (thus allowing you to rent out the other units, known here on BP as "house hacking"). Welcome to BP. All the best...
Rental Property Investor · Beverly Hills, CA · Member since 2017 · 28 posts · 20 votes
8y
I think you should explore both options. Especially, If time is a factor (for you to save your down payment), you may want to explore other strategies while you're waiting. You may even decide to use both. Hope this helps
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
@Nathan Simons, what about buying your own primary first?
ie. Much less than 20% deposit required for owner-occupiers. You'd still be eligible to buy up to a 4-plex (thus allowing you to rent out the other units, known here on BP as "house hacking"). Welcome to BP. All the best...
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
If you're within a few months of getting a deal... yes keep it in savings. If you don't you're going to have to explain it when the statements show the transaction. Depending on the competence of the person reviewing it ... might be a huge hassle for what should be a simple task.
Real Estate Agent · West Hartford, CT · Member since 2016 · 449 posts · 476 votes
8y
I would suggest kill 2 birds with one stone and buy a 2,3 or 4 family and house hack. You can get the benefit of having a rental property with using very little o f your own funds 3.5% to be exact. Use an FHA loan live there for 1 year and move out and repeat the process.