Newbie looking get first deal

[Mitchell Smith]

Hi everyone!

I’m extremely new to all of this but have been reading and listening to everything I can get my hands on the past 6 months.

I’m looking at getting my first multi unit deal but am struggling in getting started as I have quit a few student loans attached to my name. I’m in an area that is growing (Des Moines Iowa) with several college campuses and growing developments.

I’ve been assessing deals and looking at several units but I’m having trouble with the financial aspects.

Has anyone delt with this issue or have any experience with student loans and having issues getting started? Any advise would be great.

Thanks everyone!

[Darson Grantham]

@Mitchell Smith mad props to you for putting yourself out there!  IMO, the fact that, the only debt you have is mortgage and student loans is a great thing.

Sounds like you have the "more time than money" scenario.

I'd challenge you to get 3 meetings per week with real estate professionals (agents, contractors, flippers, brokers) share your story/plans and you'll more clearly define your next steps.

Also, i may be wrong, but 20% down would only be required if you didn't plan to live in the property.  An unit with 4 or less doors typically can be bought with a residential loan, which depending on the lender, you should be able to get a lower down payment more like 5%.

As long as your current house will cashflow as a rental, house hacking into a duplex or Quad may be your next step.

If all the mortgage brokers are telling you that you need 20% down, I would follow @Matt DeBoth's recommendation and go call every credit union and small bank around rural Iowa and have a meeting with them, explain your situation, I bet you'll be surprised what you'll learn. 

Also, shoot me a message, I'd love to be one of your coffee meetings! :)