buying my first home.. suggestions?

4 Replies

Hello, Im located in metro detroit area, I currently have about 30k saved up for a down payment. I was originally looking to buy a condo thats around 200k for my parents and i. My question is with that kind of mortgage under my name, would i be able to invest in rental properties within a year or two? Im afraid i won't be able to make any kind of investments because i'm tied down with the big mortgage. Any other options to consider? thanks in advance

Annual income 60k

car payment:500/month

condo rent: 1250/month (contract ending in end of April)

no other debt

this is my current financial situation.

@Joseph Cho I would consider getting something that is a little distressed and/or a property that you can add some value to in way of repairs, fixing deferred maintenance, making general improvements, maybe adding a bathroom, etc. That way you can add equity quickly after making these improvements and can possible refinance later to bring that equity out and reinvest it in another property. If you buy something that's already in pristine condition and you're paying full market value, you probably won't have any significant equity in it for at least a few years. Just something to think about.

@Joseph Cho I agree with @Jake Roland . Also you can look into different types of financing such as FHA for low down payment, seller financing,. Depending on what your'e trying to invest in, price range, rents, etc... studying methods of creative financing could help get started sooner than conventional financing. I recommend reading BP's intro to REI guide, it spells out alot of financing types and you can research from there.

@Joseph Cho sounds like you will be fine. Have you considered starting out with a nice 2-4 unit?  You could get your start with as little as 5% down using the Homepossible mortgage. 

I wrote a post about this a few weeks back and how you can use this program in Cleveland.  The same logic applies in metro Detroit.  I have financed quite a few of these programs in Detroit and buyers love it

https://www.biggerpockets.com/forums/731/topics/678742-house-hacking-2-4-units-in-cleveland-using-homepossible-mortgage

Good luck!