Hello Everyone! I am looking for a 2-4 unit in the Hershey/Hummelstown, PA area to house hack or have as a pure investment property. I am 19, interning at Slatehouse group to with my real estate license with Slatehouse Realty of Lancaster, PA. My goal is to have a property under contract within the next 6 months so I can start building equity in a property. I'm looking for advice or suggestions for finding good multi unit deals and also how to fund a purchase as a college student who doesn't work full time. I'm currently talking to a lender about an FHA loan but i'm afraid I won't qualify due to the lack of steady income. My plan right now is to try to sell a home or two as an agent and save up to make a down payment on a property through an FHA loan with my mom co-signing on the loan. Should I focus more time on finding a great deal and pitching the deal to family and friends or investors that I have met so far, OR, focus more on selling properties as an agent to save money and then look for a property that I can make the down payment on. I'm currently reading @Brandon Turner 's book on Low and No Money Down investing and it has shaken up my plans a little bit but my goal is still the same. If anyone invests in small multi family properties for buy and hold in the Hershey, Palmyra, Middletown, Hummelstown, Campbelltown, PA area, I'd love to buy you lunch or something and talk.
@Nathan Boyer congrats on getting started with the same plan (house hack and real estate sales) that got me from 2 units to 2,000 so far (goal is 20,000)!
keep learning the sales game. Sales is the #1 skill needed as an entrepreneur/investors. Using an "FHA House Hack" is a great way to get started, learn management (also a necessary skill if you want to "go far" in the biz), and build momentum.
Look for deals where 1. you can add value and refinance after year 1 (just to get off FHA and PMI). Once you do this you can move again and use the FHA program a 2nd time. 2. Make sure your property would be cash flow positive the day move out!
All the best!
@Nathan Boyer I love how hard you are hustling! I would focus on finding a good property to buy with your mom as the co-signer. Use your conventional 5% down loan as that is a much better loan. Buy 3 or 4 units if you can, because the income from the units will be used to help you qualify. After you get your first property, use the FHA loan for your second 3 or 4 unit.
I wish I had used this strategy 6 or 7 years ago, and if I had been as smart as you I would be light years ahead by now! I have often heard older investors lament that they wish they had bought more deals, and I am starting to feel that way. I passed on so many opportunities in the Berwyn market where I invest that were screaming deals in retrospect!
Focus on buying as many units in good areas as you can. You have time on your side, so it is more about finding properties you wouldn't mind holding for the long term.
@Nathan Boyer Hi Nathan. Having your mom as a cosigner is a great way to get started. I did an FHA last year and I'm currently working at refinancing out of it so I can buy another property using FHA again. Like @Ivan Barratt said, if you can find a property where you can add value, that would make the refi process very easy because of the forced equity. With FHA, you could also get a 203k rehab loan that you can use to rehab the property and add equity if the property is eligible. That would be your best bet. If you can't find a good multi, a single family is not a bad approach as well to get you started. You can rent out the rooms to cover your expenses.
@Nathan Boyer good luck to you and i love your enthusiasm. Mix that with educating yourself and finding good team members and a mentor and you will succeed.
Hey everyone! Thanks for the responses. I will keep posting updates of my journey.