Buying my first property

[Dewey Lybecker]

So my wife and I are as green as it gets when it comes to real estate investing. We're ready to jump in with both feet and are trying to be as wise as we can in the process. I've been spending hours on this website every day and have been reading a bunch of books. We really want to purchase a multifamily home in Tacoma, Wa and live in one of the units. I've been reading about 203(k)loans and am not afraid of a fixer upper. Is there a better way or better loan I should be thinking about? Would you, or would you not recommend a multifamily as a first endeavor? Thanks for all your help in advance!

[Michael Haas]

A multifamily with a low down-payment (FHA) loan or a single family with an ADU (conventional loan) is 100% the way to get started in this market. I would avoid the 203(k) unless you find an amazing deal (hard to do nowadays). The reason behind that is that a single contractor has to sign on for the whole project, which pretty much limits you to the big firms that charge an arm-and-a-leg. You can't put any sweat equity into the project either during the construction phase. Finding a good contractor is already very difficult, and with the 203(k) loan and the additional paperwork it entails it's even harder.

Happy to connect with you on Multi's in the Tacoma market- just finished an inspection in Tacoma for a house-hacking client today. Cheers!