What would you guys do with $10000 for a first time home buyer?

[Akeem Moreno]

Any suggestions on how I can use $10000 to start of my real estate journey?

[Shane Short]

Morning @Akeem Moreno!

    I would first read 'The Book on Rental Property Investing' by @Brandon Turner. It's an awesome book that will help you develop a solid game plan, understand your financing options, and help you figure out where you want to start at first. 

    You have so many options ahead of you and the places you can go! You've got a great starting savings, and low debt, which is fantastic. I started with 42,500 in credit card debt, and 2,000 in my savings. Thankfully I have a great Engineering job and was able to spend 2 years paying off my credit card debt. In the meantime I read a lot of books like the one I listed above, got my Real Estate License, and got to work! 

I'm not sure what housing prices are like where you're at, I'm assuming not cheap, but I would definitely look into House Hacking first and foremost. You'll be able to free up a large chunk of money each month by not having to pay a mortgage/ rent, and if you play your cards right, you can even possibly have some cash flow on top of that. You can still use an FHA for anything up to a 4-plex, you just have to live there for 1+ years, and after that year you can refinance to a conventional (Fannie Mae backed loan) and use your FHA again! I just learned about that, you can use your FHA loan opportunity more than once, look into the specifics for sure, but I believe you have 3 years to use it repeatedly, as long as you are only using one FHA loan at a time, and it's your primary residence.

    If you do your analyzation correctly, then when you refinance your home each time, you are able to get any equity built up by your tenants, your original down payment (if you can increase the value of the home with some face lift work), and your cash flow generated from the property to use as a downpayment for your next one, and you can do that over and over again. 

    I wish you luck man! Keep us updated on your journey! We need all the success stories we can get on here, I look forward to reading yours! Don't stop asking questions. Ask, and ask, and ask, and ask. And when you're so tired of asking questions your brain hurts, ask some more lol.

Regards,