I am new to BP, and just as new to real estate. I am a 25 year old living in South Florida (Broward County to be precise), and will be getting ready to purchase my first home in the next 6 months to 14 months. I am currently renting. The reason that timeframe is so broad is due to the fact that I am a Marine Reservist who is schedule to deploy for 6 months in January 2019. I am debating about purchasing before then, but feel that it would be a better decision to wait until after I return from the deployment as I will be able to have saved a decent amount of cash. My ultimate goal over the course of my life is to be successful in real estate investment through flips and rentals.
Here is my question for the BP community. I am looking into 2 initials loans for my first home. I am either looking at a FHA 203k loan, or the VA loan that I qualify for. My plan is to purchase a home that need works to it, but that I will also be living in. Price range would be somewhere around the $175k-$225k. Once renovations are completed, the goal would be to sell that home for another property, or depending on how much capital I have on hand buy a small duplex to live and rent out. Currently, my savings are about $25k (If I wait until after deployment I'd be looking at closer to 50k). Now this may not seem like a lot to most people, but for the VA and FHA loans I can do a decent amount with that.
Does anyone have any experience with the FHA 203k loan, suggestions, or recommendations that they can offer? I am trying to gather as much information and resources as possible before pulling the trigger.
Thank you for your time in reading this post.
I would wait to after you come home. You will have more capital for your rehab. I'm not privy to VA loans but with a FHA you will have to put down very little. You will be left with a good chunk of change for your rehab. A house hack of a multi family If possible is the way to go. I do it myself and it is great for me. I live basically for free and still have positive cash flow on top. You should look into and find out more about VA loans thought from what I have heard it might be even better then a FHA.
Thanks for the reply. My thought with purchasing before the deployment is that I would have about 6 months to renovate prior to leaving, and It will shave about 10 months total off of the year requirement to live in the home before I come back that is required with the FHA loan. Alternatively, the extra capital is highly wanted as well. Difficult choice. Trying to evaluate what the best route would be.
VA is great because you don't have to put any money down, and there is no mortgage insurance from what I've understood. I also automatically qualify for a $420k loan through It. I do need to learn more about It though.
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