Looking for Financial Advise for Getting Started

[Justin Allen]

Hello Everyone!

I'm looking for some financial advice on getting started. I understand that there are many ways to finance a buy and rehab project. So here's my scenario.

I haven't done any deals as I am just learning about REI. I've calculated my DTI which is about 70% alone without my wife finances. I have about four savings account which totals a little over 3k for different reasons like Emergency (2k), Travel (1k), a credit union saving (~300+), and investments (~350 and adding [Had more but I spent it some stuff to educate myself and get started with the stock market. I'm still learning I took a big hit but slowly building back up]). I typically add about $100 to each for the Emergency, Travel, and Investments account every month. After bills paid, I typically have around $300 to $400 left to spread out for savings monthly. I have a principle of 9K left on my car which I plan on using the extra savings to quickly pay it off so I can have an extra 350 to save and invest. I thought about trying to quickly pay my Student Loans off after my Car, but I have about 18 more years to pay it off so the payment is super low (~250). I was paying double at first but that payment will also go towards the car loan.

With my finances, should I continue to save up for a certain down payment size for a buy and rehab? Or would could I be able to find loans that I qualify for which such a high DTI?

I hope this all makes sense. Thanks in advance!

[Bart H.]

Originally posted by @Justin Allen:

Hello Everyone!

I'm looking for some financial advice on getting started. I understand that there are many ways to finance a buy and rehab project. So here's my scenario.

I haven't done any deals as I am just learning about REI. I've calculated my DTI which is about 70% alone without my wife finances. I have about four savings account which totals a little over 3k for different reasons like Emergency (2k), Travel (1k), a credit union saving (~300+), and investments (~350 and adding [Had more but I spent it some stuff to educate myself and get started with the stock market. I'm still learning I took a big hit but slowly building back up]). I typically add about $100 to each for the Emergency, Travel, and Investments account every month. After bills paid, I typically have around $300 to $400 left to spread out for savings monthly. I have a principle of 9K left on my car which I plan on using the extra savings to quickly pay it off so I can have an extra 350 to save and invest. I thought about trying to quickly pay my Student Loans off after my Car, but I have about 18 more years to pay it off so the payment is super low (~250). I was paying double at first but that payment will also go towards the car loan.

With my finances, should I continue to save up for a certain down payment size for a buy and rehab? Or would could I be able to find loans that I qualify for which such a high DTI?

I hope this all makes sense. Thanks in advance!

I am a big Dave Ramsey fan, I am a believer in his baby steps.  Get your emergency fund, then pay off your debts.  THEN buy a house.

I would consider early on trying to house hack, buy a property and rent to friends.  Check out the book set for Life by Scott Trench.