New to Real Estate · AL · Member since 2021 · 56 posts · 12 votes
Hey everyone. My name is Will Stewart and I want to get started in buy and hold but have yet to make my first purchase. I hope to change that in the next few weeks. I do have a few questions I would like to ask and have anyone answer. First, what do you consider to be the best buy and hold property type? Second, what amount of passive income would be a good target? I have heard $200-$250 but am not sure if that is more location dependent. Lastly, what are the best finance options you have found to use little to no money out of pocket? I would like to do FHA but what are some other good options? Thanks so much for your time and help. I appreciate any input.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
4y
FHA is for house hacking because you have to live there for a year. Is that what you are looking to do? The property type is highly dependent on your budget and your market. Some new investors like to start with a condo to live in (pay HOA, but have the safety of no roof issues, common area, etc) which has livability and then transitions well to a first investment as long as you know the regulations for renting it out later. Most now are doing FHA and house hacking in 2-families to live in one side (preferably a smaller unit) and renting the other. There is no target for passive income, it depends on your market and the appreciation potential.