Buying my first deal

7 Replies

Hey everyone, I have been saving to buy my first multifamily home. Initially I wanted to do the 203K FHA loan, buy and fix and gain instant equity. But recently my Son needed a procedure done which used up all of our savings and then some. With our lease being up in about 10 months we really want to buy our first rental property rather to sign another lease. I was wondering if we go the hard money loan to buy and rehab then refinance,the "BRRRR strategy". How much skin in the game will we need for being first timers.
@Edisson Casseus generally, a hard money lender will need 10% - 20% of the purchase price, plus whatever points they charge, and money to start the renovations (realistically, 25% of the reno costs), and a reserve for loan repayment. For example, I just finished a BRRRR a few months ago, purchase price of $55k, reno of $40k, it cost me about $30k upfront to buy and start renovations.
@Edisson Casseus FHA is definitely the lowest cost of entry. They are pickier in their lending practices, so that's something you'll have to deal with. Clearwater is a great place to start, especially if you know the neighborhoods.