Using a Fha loan for investing?

Using a Fha loan for investing?

Investor · stockton, CA · Member since 2014 · 34 posts · 3 votes

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%. 

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Investor · Chandler, AZ · Member since 2014 · 303 posts · 101 votes
11y

@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.

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  • Manhattan, NY · Member since 2012 · 44 posts · 31 votes
    11y

    Owner occupied, I presume..

  • Investor · stockton, CA · Member since 2014 · 34 posts · 3 votes
    11y

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

  • Investor · Chandler, AZ · Member since 2014 · 303 posts · 101 votes
    11y

    @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.

  • Investor · stockton, CA · Member since 2014 · 34 posts · 3 votes
    11y

    @Justin Howe 

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

  • Investor · Chandler, AZ · Member since 2014 · 303 posts · 101 votes
    11y

    @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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