I have a quick question about my first buy

[Sindo Perez Esson]

Hello, I'm a new member of BP from Miami. So yeah, about 3 months ago I started getting interested in real estate investing. I been trying to learn as much as possible these last three months. Today, I got pre-approve for an FHA loan for $195,000 from Citi bank using all the government programs. I try other banks but most banks don't work with government programs. Most banks want 3.5% down but around $10,000 for closing cost and I only have $10,000 save up. What should I do in this situation because prices of houses here in Miami are very high and $195,000 may not be enough? My plan was to buy a duplex but I think is going to be very hard to find a duplex at that price, so I'm going to have default to a 3/2 single family home.

[Brie Schmidt]

@Sindo Perez Esson - the banks should be using 75% of the rent from the other unit as income if you buy a duplex.  Your other option is waiting till you have more saved, most banks want the down payment, closings costs, and 3 months of payments as reserves.  If you can only cover the down payment I suggest waiting till you can cover all the costs, you don't want to be in a situation when a major repair hits and you have no money