Advice first investment/home providence

[Eladio P.]

Rhode Island housing loan program Hi bo family!

After a while of fixing my credit and finances im 90% ready to jump and buy my first property. I have always thought about the first-home loan from rhode island housing were they finance 100% and have assistance for down payment and all that.

I know that after pre-approval you start working with a agent looking for a home, my question is; can i at that part of the process look for a off market deal instead? properties from wholesalers maybe without breaking any procedure with the bank?

I know the property will have to be almost turn key condition in order to get approved because that first-home program is very very similar to FHA. My goal is just to make a good deal, at least something instead of nothing, i know its a hot market right now. Anyone with experience in providence, Cranston, Pawtucket or the whole Rhode Island will be appreciated. Oh I'll be looking for a 3 unit multi.

[Anthony Thompson]

@Eladio P. that's great to hear! I think you've been on BP for a while so it's great to see you taking that first step. Congratulations!

The main thing about wholesalers is that most are looking for cash buyers who can close quickly, which doesn't really work well with bank approvals, appraisals, etc.

However you can definitely contact sellers directly and try to buy directly from an owner. In that case you are much more likely to find an owner who will be perfectly fine with your using a bank loan. Usually (depending on the situation) they're more concerned about the price than it being a cash deal.

I think starting with a 3 unit multi where you'll live in one of the units is a great move, you'll get good financing terms and you'll definitely learn the landlording business that way! And there's definitely some virtue in simply getting past the hump of the first property, no matter the exact price point.

Minor tip: If it's palatable to you, I'd recommend living on the third floor as it's usually easier to rent out the first and second floors. So if you live in the "worst" floor yourself you'll generally have an easier time filing the other units and thus have shorter vacancies / more money.