New to Real Estate · Bergen County, NJ · Member since 2020 · 4 posts · 1 vote
As mentioned, I am in my last year of my undergraduate studies. I do have student loans that I'm paying off. At the same time, I've been maintaining a good credit score of around 700+. I am saving money hopefully to make a down payment on a loan that I get. Any tips or advice would be much appreciated as there are probably a handful of seasoned investors just like me that may or may not have the same questions as me.
Rental Property Investor · Collingswood, NJ · Member since 2016 · 282 posts · 116 votes
5y
@Joon Park If you're looking to house hack, I would recommend checking out the HomePossible loan (if you qualify). In my opinion, I think it's a better option than FHA.
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
5y
@Joon Park That depends on what you are looking to do. BRRRR, flip our house hack. Most of the time an FHA product will get you in a home for 3.5% if you were to try house hacking first.
Specialist · Huntsville, AL · Member since 2020 · 96 posts · 35 votes
5y
I recommend doing your very first loan is a fix and flip. Just make sure that your leveraging the money that you have down into no more than 75% LTV situation to maximize profit. Then all you're doing at that point is making sure you had the largest spread possible between the purchase in the rehab compared to your final sales price. Or what the comps are in your area for a sale.
Rental Property Investor · Collingswood, NJ · Member since 2016 · 282 posts · 116 votes
5y
@Joon Park If you're looking to house hack, I would recommend checking out the HomePossible loan (if you qualify). In my opinion, I think it's a better option than FHA.
@Joon Park That depends on what you are looking to do. BRRRR, flip our house hack. Most of the time an FHA product will get you in a home for 3.5% if you were to try house hacking first.
I was looking in venturing down the single-family property route with a buy-and-hold strategy in mind. However, I do have to do more research on the BRRRR method. Is buying and holding a viable strategy for someone starting out in rental property investing?
I recommend doing your very first loan is a fix and flip. Just make sure that your leveraging the money that you have down into no more than 75% LTV situation to maximize profit. Then all you're doing at that point is making sure you had the largest spread possible between the purchase in the rehab compared to your final sales price. Or what the comps are in your area for a sale.
I appreciate this info Jason very much. Thank you so much for that.
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
5y
@Joon Park That kind of depends on how much risk you want to take. House hacking would be the least risk and likely least amount of cash needed to get into your first home (using first-time buyer programs), in my opinion. I went with a house hack for my first investment property and my mortgage was dramtically less than most rent in the area as a result of tenants paying it for me.