Contractor · Pasadena, MD · Member since 2020 · 5 posts · 0 votes
Hi, everyone I am starting to look for my first property investment. I have 20k saved up. I’m looking to invest in a property that cost 100k or less. What is the best type of loan to start with?
Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Peter Shiflett unfortunately it depends! What are your goals with purchasing an investment property?
@Craig Curelop would argue for getting a 3.5% FHA loan then house-hacking.
@Brandon Turner would get a private money lender and then use the BRRRR method.
Some would just put down 20-25% to give you a margin of error with cashflow.
There are numerous strategies that can get you where you want to be which is why you need to think about where you want to be (ie goals) before you start.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
Probably your conventional loan from a bank, you will probably be a fair bit under $100k if you only have $20k saved up as you'll need to pay for closing costs as well as have reserves.
Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Peter Shiflett unfortunately it depends! What are your goals with purchasing an investment property?
@Craig Curelop would argue for getting a 3.5% FHA loan then house-hacking.
@Brandon Turner would get a private money lender and then use the BRRRR method.
Some would just put down 20-25% to give you a margin of error with cashflow.
There are numerous strategies that can get you where you want to be which is why you need to think about where you want to be (ie goals) before you start.
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Peter Shiflett - doing a BRRRR with $20k will be tough. Typically you buy a BRRRR with all cash or Hard Money and then refinance it out.
I would highly recommend starting off with a house hack. If it's a 2-4 unit, use an FHA loan. If it's a single family house hack, I would recommend a 3% to 5% down conventional loan.
Contractor · Pasadena, MD · Member since 2020 · 5 posts · 0 votes
6y
@Craig Curelop I’m looking at either a single family home or row home style. So going with a conventional with 3%-5% would be ideal? how can you do a house hack with a single family home or row home? Don’t you have to move in? I live with my wife and daughter already in a single family home so moving in would be out of the question.
@Peter Shiflett - doing a BRRRR with $20k will be tough. Typically you buy a BRRRR with all cash or Hard Money and then refinance it out.
I would highly recommend starting off with a house hack. If it's a 2-4 unit, use an FHA loan. If it's a single family house hack, I would recommend a 3% to 5% down conventional loan.
Contractor · Pasadena, MD · Member since 2020 · 5 posts · 0 votes
6y
@Cameron Tope the book I’m reading now “bigger pockets rental property investing” in chapter 3 plan 2 is investing in single family homes, says you can start investing with 22k? What are your thoughts on this subject?
@Cameron Tope the book I’m reading now “bigger pockets rental property investing” in chapter 3 plan 2 is investing in single family homes, says you can start investing with 22k? What are your thoughts on this subject?
What are you trying to accomplish by investing in real estate?
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Peter Shiflett - With a single family home and a family, I would suggest finding a larger house that you can section off. Perhaps there is a basement with a separate entrance or an additional dwelling unit? I don't know much about the house characteristics of your area...but if you can find something like this, that's golden.
You may or may not fully cover your mortgage, but even if you can assist with it, that'd be great!