So after listening to about a dozen BP Podcasts, I've determined that wholesaling may not be the best place to start. My current situation requires that I find a new place to live in the next 6 months so I think I maybe should consider a 2 or 3 unit complex to start. My only concern is funding? I make a decent wage, however almost half of my wage goes to support payments and the rest goes to paying down debt. Would hard money be a viable option? Is an FHA 203k loan impossible to get?
Any help and suggestions would be greatly appreciated.
@Dennis Guzman FHA loans are a great way to get into a property (owner-occupied of course) with very little money down. The caveat is that because you're putting such little down, you're likely to have much higher mortgage payments.
Lenders will verify your income and come up with your Debt-to-Income ratio (DTI) as one of the ways to determine if you qualify for the loan. If your DTI is too high to support the payments on the loan amount you're requesting, you'll be denied. Do some searching here on the forums for how DTI is calculated. I think the maximum allowed by FHA is 50% DTI with great credit/cash reserves.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!