Using a Fha loan for investing?

5 Replies

Hello BP,

   I am a new investor with very limited funds to invest with. That being said, most fingers point to wholesaling for a starting spot for investors with low funds,  but other investors says wholesaling is a horrible start for newer investors. so I was wondering if using a fha loan for my first investment is a good idea. If so , what sort of strategy should I be looking for? I've have been approved for $115,000 with two down payment assistance programs so all i need to bring to the table is .5%. 

Yes owner occupied, if necessary I would be willing to move in the property to complete the transaction.

@Carlos Powell I'd recommend buying a SFR or small multifamily and house hack. Rent out rooms that you aren't using to build reserves and then use that cash to start a direct mail marketing campaign.

@Justin Howe  

 That a great idea! Is the pre-screening the same as when you renting out regularly or is it a different process? 

@Carlos Powell  

Your tenant screening process should be the same. Especially since you may be living with the tenant in the same house or right next to them, you want to ensure you choose quality tenants.

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