Newbie question from a first-time investor
Hi all - I'm just getting started in real estate investing. I have not yet attempted to buy my first property. I understand mortgage basics, but the most real-world experience I have with loaned resources is my car loan. I suppose I would like to give some basics of my situation, and see if any of you seasoned veterans are willing to give me a general sense of what I might be able to do with it.
I'll be investing in Washington, DC. Properties here are expensive...most 1-bedroom units that I have looked at (that aren't entirely dilapidated) are running between $200-300k. I have about $200k or so in assets that I intend on pouring into real estate investing. However, my primary concern is that my income from my day job is very meager....around $40k/year. I have decent credit, but it's only from paying off credit cards (no debt) and my car loan on time - and I'm not sure if the source of my credit is considered more than the score itself.
If I go to my community bank with a well-drawn out business plan and proof of my considerable assets, will I be able to get a mortgage on a property in the range described above, 200-300k, if I am able to put down the 20%? Or is the tiny number on my bi-weekly paycheck going to kill my chances?
Also, I should say that I'm not set on 1-bedroom condos, they are just what I'm most familiar with. If you have examples of other things that could be done with that money, I'm all (wet) ears.