Hey guys. So I'm just beginning my journey to prosperity. Being a newbie I often find myself faced with hard decisions. BP has helped me a lot and I thank eveyone who has offered their insight. I have another dilemma on my hands and I'm hoping to get a little help.
I was to qualify for a FHA loan and I am a little torn as to how to use it. My initial plan is to purchase a duplex and rent one side and live in the other. I'm aware that with an FHA loan I'll be expected to live there for a minimum of one year. I've found a couple of potential properties and the number make good since.
another option, and I may be of track with this one, is to use the loan to purchase a home to filp. I know many investors like to flip first to fund buy and holds, but I actually planned to build my cash flow to a certain level before I got into flipping.
I'm hoping some vets could give me a little advice as to which direction would have the best chance of long term, sustainable success. Given that I work hard, am very attentive and learn quickly. I know everyones situation is different. I am just lookin for general advice. Thanks for reading. I know it's rather long.
Everyone will of course have different opinions but I would go with the duplex. If your flip dose not sell you could get in trouble quick(or it could sell and you make a lot of money). If you have a duplex and rent out one or both sides you have a better shot of being successful. That's just my opinion of course. I have sold a few houses but prefer to hold long term if possible. There is really no wrong answer. Run the numbers and know the market. Worst case if you go to flip a house and it dose not sell you can rent it.
Thanks for you input Brian. I don't like to feel as if I'm constantly asking for help without giving any in return. It's just that at this point in the game I don't have the experience to offer qualified suggestions. I know there are many different views on the different methods. I believe that buy and hold first would work best for me. The thing that has always turn me off with flips is the thought of having that money (commitment) tied up for months, even a year at a time and having a hard time selling.
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