So I'm close to finally saving up $10k to be used on a real estate investment. It would be my first investment property so I'm interested in the buy and hold properties direction. Not house flipping. What would you do if you were me?
I would house hack. Low bar of entry and you can learn.
Are you trying to purchase a property with only $10k?
I understand FHA is not doing multi-family loans anymore. I could be wrong but that was my experience representing a seller of MFH this summer. But I'd look at doing a house hack with a FHA or conventional loan with your $10k downpayment.
Find a house somewhere for $100,000 and use your $10k as the down. Assuming you can qualify for the loan....
House hack or find a distressed property that you can BRRRR and get your money back out or more.
@Juan David Maldonado congrats on saving that much-most don’t.
I have considered, but not pulled the trigger, on investing at roof stock or ground floor. That is what I am considering doing with additional funds until I can afford the next down payment.
Again, kudos to you for saving that much, but I think you’ll be really hard pressed to find a property you want to own and then commit to a rental at the price point your savings can currently afford.
An alternative I haven’t seen mentioned yet is partnering with someone-you can learn from a local investor you’ve networked with and have some skin in the game in a partnership.
I agree with what others have said - I understand there are government programs that will let you buy your first home for as little as 5% to 10% down. Buy one of those, move there, then fix it up yourself and wait for a couple years for it to appreciate. Next thing you know you might find yourself with a much larger equity. Good luck!
Congrats on saving that amount of money. An option would be to apply for an FHA loan putting as little as 3.5% down payment, the thing is with an FHA loan you must live in the property so I would recommend a duplex property. Another thing is that besides the down payment you would also have to consider the closing costs fees which are typically 3% of the loan amount on top of the 3.5% down payment. You can also keep in mind that you can do an FHA 203k ( Fixer up loan). Hope this helped!