Hi every one! I’m new here and am looking into investing in real estate and hopefully my own business one day, but I’ll stick to just talking about real estate here.
First off maybe it would be easier to read about others success stories so if there is a way I could be pointed in the right direction that would be great.
I do have some questions and ideas of my own though so I’ll just ask away. Is it better for me to buy within my state or is it possible to find a good deal on a house any where in the country and still be able to afford/maintain it? Also, I was thinking to get my foot in the door I would start with a 1 family home, within the 80-120k range. The reason behind this is because I would be able to come up with the 20% down much easier and avoid paying PMI here in Rhode Island.
That’s it for now, thanks in advance for any advice given!
Yes, generally it is much better to invest within your own state. It's lower risk and you will learn a lot more. The only exception I'd say to this would be if you have a close connection to another part of the country and you already have a manager/team there you trust. But if you're just starting out and you don't have that, my recommendation would be to stay local.
You will find it difficult to find a single family home in Rhode Island within the 80-120k range, unless you are willing to live in a very tough area and/or buy a house that needs a lot of work. Buying a house that needs a lot of work is OK but I wouldn't recommend a medium/large rehab for your first deal, especially if you're going to live in it. And remember, your "all in" price will ultimately be higher than 120k depending on how much work is needed.
I would recommend talking to one or more mortgage brokers, or loan officers at banks you already have relationships with, as you may not have to do a 20% down conventional mortgage but may be able to do FHA or Conventional 97. So that would be the first stop, so you can get a realistic sense of what you can afford and what you might need to do to afford more, if you need to (e.g., pay down debt).
Good luck, welcome to Bigger Pockets, and let us know as you have more specific questions along the way of course!
Architect · Providence, RI · Member since 2016 · 257 posts · 195 votes
8y
I also recommend sticking closer to home. I personally couldn't manage a home that was more than about an hour away, this is partially because I'm very hands on, and would be involved with any repairs/modifications. It's going to be tough to get your price range around here, but you might consider a house hack, and get in with your first time homebuyer (if possible).