New to Real Estate · Frederick Maryland · Member since 2021 · 1 post · 0 votes
Hi,
I’m 22 and my wife, 23, and I just graduated college, got married, and moved in together into a rental property. We don’t make a lot of money, my wife is still in school to become a nurse so she works part time, and I work at an entry level position at a hospital. I want to purchase a buy and hold investment property but lenders don’t like giving loans to broke young people. We have good credit, about 730 and 745 respectively. But we make about 45k/ year.
The properties in my area, Frederick Maryland, are going for mid 300’s to low 400’s. I can’t get pre approved for more than 200k. Should I wait a couple years to build up a nest egg to invest with? Should i try to wholesaling a couple properties to get started? Any ideas? I’m new, thank you all for any and all suggestions!
I’m 22 and my wife, 23, and I just graduated college, got married, and moved in together into a rental property. We don’t make a lot of money, my wife is still in school to become a nurse so she works part time, and I work at an entry level position at a hospital. I want to purchase a buy and hold investment property but lenders don’t like giving loans to broke young people. We have good credit, about 730 and 745 respectively. But we make about 45k/ year.
The properties in my area, Frederick Maryland, are going for mid 300’s to low 400’s. I can’t get pre approved for more than 200k. Should I wait a couple years to build up a nest egg to invest with? Should i try to wholesaling a couple properties to get started? Any ideas? I’m new, thank you all for any and all suggestions!
What I would suggest is you hone your deal-finding skills by finding good deals and then passing them on to investors for a finder's fee. That will help with your income (save up all finder's fees into a cash account for later use in your own first purchase), and it will also give you good practice in finding deals for yourself some day.
Sounds to me like you're rushing thigs a bit.....I know investing is the big new craze for young people, but I would get my own piece of property first before I looked at the potentially risky business of investing.
Buy a house or condo or anything. Anywhere. Any condition. Just get your foot in the door (so to speak). Get both of your incomes stabilized and work on your place (Sweat equity). And wait for these crazy prices to correct (they will). Then take a stab at investments. In the meantime, read, study, practice, learn.....
I wouldn't do wholesaling (it is a bit dodgy). Is the price you listed for an entry level home? What about finding a second job for a while to bring in more money?
I’m 22 and my wife, 23, and I just graduated college, got married, and moved in together into a rental property. We don’t make a lot of money, my wife is still in school to become a nurse so she works part time, and I work at an entry level position at a hospital. I want to purchase a buy and hold investment property but lenders don’t like giving loans to broke young people. We have good credit, about 730 and 745 respectively. But we make about 45k/ year.
The properties in my area, Frederick Maryland, are going for mid 300’s to low 400’s. I can’t get pre approved for more than 200k. Should I wait a couple years to build up a nest egg to invest with? Should i try to wholesaling a couple properties to get started? Any ideas? I’m new, thank you all for any and all suggestions!
What I would suggest is you hone your deal-finding skills by finding good deals and then passing them on to investors for a finder's fee. That will help with your income (save up all finder's fees into a cash account for later use in your own first purchase), and it will also give you good practice in finding deals for yourself some day.
Great that you are itching to jump in and be a real estate investor. One way that may work for you is through FHA's 203K program. There is a rehab part and a purchase part to the program.
The purchase part allows you to buy up to a 4 unit. You can then live in one of the units and rent the others. The income from the rental units count towards your qualifying income.
Since this is a low downpayment FHA program the downpayment should be within reach. The loan can be used for acquisition and renovation of the property.
You are required to live in one of the unit's for a few years as a condition of the loan. Therefore, you can be an investor and home owner in one shot. You may want to get more details about this program.
Like Ulric said, you should look into loan programs that are good for first time home buyers and specifically ones that will allow you to treat them as an investment by living and renting in the same home. No matter what buzzwords are said or you read remember to make sure you make enough money in your full time jobs to cover the costs of your rental property investment. Always have a spreadsheet that shows your income and expenses and review often. Read a book or two a month and/or listen to an audio book a month in real estate investing and finances. The pod casts are also good to listen to here. Find a realtor that is willing to HELP you and your wife find properties that fit your criteria, your budget, and your timing. Good luck!
Great that you are itching to jump in and be a real estate investor. One way that may work for you is through FHA's 203K program. There is a rehab part and a purchase part to the program.
The purchase part allows you to buy up to a 4 unit. You can then live in one of the units and rent the others. The income from the rental units count towards your qualifying income.
Since this is a low downpayment FHA program the downpayment should be within reach. The loan can be used for acquisition and renovation of the property.
You are required to live in one of the unit's for a few years as a condition of the loan. Therefore, you can be an investor and home owner in one shot. You may want to get more details about this program.