Bethlehem PA (bethlehem, pa) · Member since 2018 · 11 posts · 2 votes
I’ve been learning as much as I can about investing and my plan at first was to save up money for 2-3 years but now I’m wondering if it’d be possible to invest in a rental property with only $10,000 saved up. If it is possible, what kind of property do you think I’d be able to get? (Price wise). I’m still going to be learning as much as I can but by next summer I want to start getting into the investing. Thanks!
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
8y
What's your current situation? Single? Married? Co-habitating with somebody? Full time employment? Renting?
There is no need to wait to house hack. 2-4 plex, 3.5% down with FHA loan. If you're renting, what is your rent? You can almost always improve your situation with a house hack of even a duplex. You said you might wait 3-4 years. In 3-4 year from now with a house hack today, you may have another 20% down to buy even more properties!
Also, I don't feel you have to have a ton saved for capex and the like right away. Get a home owners warranty for first 12 months on your house hack for any large expenses that come up, and treat the place like a true rental. i.e. If you're currently paying $1,000 a month rent, keep paying that amount, even if it's to yourself (the house hack account), and save quicker. Your tenants will pay at least 50-60% of your mortgage or more, and you continue on your current budget and savings rate for the expenses or vacancies that will happen.
Go to a bank, apply for a FHA mortgage, and then find a great realtor to show you around and look at some multi family homes. $200,000 multi family is easy to get into with $10k cash. Keep in mind, if you close on say the 2nd of the month, your mortgage won't be due for almost 60 days. In the meantime, you'll get that first months rent (prorated from seller), and that 2nd months rent from tenant, without any rent or mortgage payment from yourself. So, sock away all that money and then some in your first two months to get that capex/maintenance/vacancy account moving.
Buford, GA · Member since 2017 · 50 posts · 13 votes
8y
I was in a similiar position not too long ago and kind of was in a rush with the excitement to get out here and start investing but after consulting the forum members decided to continue to build my cash while furthering my education through podcasts, books etc. I am not saying don’t pursue whatever you are trying to do with investing but personally pursuing knowledge as a newbie is the highest ROI you can get in my humble opinion. Best of luck
Rental Property Investor · Racine, WI · Member since 2012 · 27 posts · 21 votes
8y
@Anthony Marucci you can house hack! I got my fist place that way when they offered 100% financing. Just make sure you crunch the numbers so that when you move out the property will still make money. You can house hack from one house to the next easy!