Work on credit or finding deals

5 Replies

I am caught in a conundrum currently. I have been saving up over the past couple of years and I am looking for my first buy and hold deal. I am 20 years old and my credit reflects that. My fiancé has a better score but it’s still only below average. We have saved up for a 20 percent down payment. The issue we are facing is whether to be patient and work on our credit while continuing to save up money, or invest now and deal with the higher rates as long as the deal makes sense. Any advice would be great. Thank you!

@Eric Gross  one option would be, with that amount of money, you can look at owner financing. It may not be available on every deal your looking at, but if you find one that works, put part of your savings down and get put on title, then keep the rest for reserves. Collect the cash flow while your working on your credit. Refinance it in 1-3 years and pay off the seller. 

You can also consider doing a bit of rehab or upgrade to help force appreciation and make the refinance quicker and easier?

Have you thought about house hacking a multi family property? FHA requirements are less strict and require less down payment, leaving more money in your pocket as well.

Thank you @Kevin R. for replying! We were very interested in owner financing but it severely limits the houses. Most realtors we have talked to said it is difficult to find it in this area now. We would also love to do a rehab but like most markets the options are slim picking. I will definitely look more into these options. Thank you again! 

@Jason DiClemente we are definitely leaning towards house hacking with an FHA. The one con is I currently live with family as I am in college. Therefore I have been able to put back the majority of my money from my full time job. I don't know if I am ready to say goodbye to putting back most of those paychecks. Thank you for the help!

Another thing to learn in this business is patience !!! You should consider other markets, if your current market doesn't allow for acceptable options based on your current situation. 

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