Purchasing a property with ~15-20K. Possible?
Hi everyone,
This is my first post here, so I apologize if I've done anything incorrectly. One of my goals this year is to learn everything I can about real-estate, especially using it for passive income. I've been listening to "Passive Real Estate Investing" by Marco Santarelli and watching videos on Youtube. I'll start the "The Ultimate Beginner’s Guide TO REAL ESTATE INVESTING" from BiggerPockets tonight as well.
My short-term goal is to purchase a duplex in the next year. I'd love to live in one half and rent the other half out, just so I'd be living at no cost. I have about 10K saved, but I'm starting a new job next week and can probably have ~20K saved by the end of the year.
Do you all think it's worth looking at an FHA loan? Or should I wait until I have more money saved and go for a more traditional route with a 20% down? I don't think the 15-20K will be very useful for a traditional mortgage, because it's probably tough to find a 100K duplex in a nice neighborhood in my location (Atlanta). I've also been looking at the Affordable Loan Solution® mortgage from BOA (3% down, no mortgage insurance required), but I guess that loan has restrictions, such as the "borrower's income cannot exceed the area's median income" (somebody told me this restriction...still need to do some more research on it).
I guess I'm worried that the PMI of the FHA loan will end up causing me more harm than good. I've also been told that many owners won't accept an FHA loan because there are additional steps that need to occur (health and safety inspections, repairs on owner's expense, etc...).
As experienced buyers and investors, what do you think is the best option for me? I'm all about learning this year and reaching out to more experienced investors. Hopefully this time next year, I'll be living rent free (excluding mortgage payments)– Is that timeline too aggressive? Is it even possible to figure this all out in 1 year?