I know Brandon and the rest of the BP team talk about utilizing FHA loans early on in the RE investing journey. I feel like I hear of all the success stories: "I started by getting an FHA loan on a triplex and now I have 50+ units!" I know they make for great podcast episodes but do you know anyone or have you ever gotten hurt using this strategy? I know some investors who emphasize putting 20% down at the very minimum. What are y'alls strategies to mitigate risk when it comes to vacancies, unexpected expenses, or economic downturn?
When I started out I house hacked a duplex and rented out the other unit plus a room in my own. I did 20% down but in hindsight I could have done an FHA loan for the purchase. To mitigate risk lots of work is upfront ensuring you are aware of all the expected expenses like repairs, capex, vacancy, etc. in addition to having an emergency fund. With the added expenses and expected income you should have an idea if the deal is good for your circumstance.