I am a 21 year old with a 50k salary. I am currently saving a large sum of my monthly income. In about 6 months I am considering buying a place instead of renting or buying my first BRRR property. Don't know which is the right move, I would be willing to house-hack a multiplex but haven't seen any pop up in the last few months. Any advice is greatly appreciated.
Investor · Knoxville, TN · Member since 2018 · 71 posts · 21 votes
5y
Based on the preferences, I would have done the following -
1. First priority House hacking with MF i.e. Duplex, Triplex
2. Buy a SFH as owner occupied property and rent out 1/2 room if possible. Good thing is that you can get low interest mortgage or even FHA loan
3. Buy a SFH, live there for a year, then make it a rental property and move to a new house
4. Last option is to buy rental property as first purchase, dont forget you wont get best mortgage rate and you will have to put more down payment than your primary residence
Investor · Knoxville, TN · Member since 2018 · 71 posts · 21 votes
5y
Based on the preferences, I would have done the following -
1. First priority House hacking with MF i.e. Duplex, Triplex
2. Buy a SFH as owner occupied property and rent out 1/2 room if possible. Good thing is that you can get low interest mortgage or even FHA loan
3. Buy a SFH, live there for a year, then make it a rental property and move to a new house
4. Last option is to buy rental property as first purchase, dont forget you wont get best mortgage rate and you will have to put more down payment than your primary residence
@Emran Chowdhury a lot of the multiplexes that I have seen thus far in my area are in seedier parts of town, which is the only reason I am hesitant to go that route.
Something I just thought of, could I get a single family with an FHA, do small reno to raise value, then refi to pull money out and start BRRR that way? The initial single family would be the one I would live in in this case.
Investor · Knoxville, TN · Member since 2018 · 71 posts · 21 votes
5y
@Micah Shackelford
Most likely you need to talk to FHA lender to find out their refinance options. Sometimes they have strict regulations which type of property you could buy/refinance with FHA loan and primary residency requirement.