How to buy first rental using OPM ?
I want to buy a multi family unit using other people’s money and rent it out..
How do I get started??
I’ve never bought a house, I have 0 credit and am working on getting a credit card, and I don’t have a whole lot of money.
I’ve heard some things about private lending, first time home buyers loan, and a rehab or 203(k) loan.
I do know that for a first time home buyers loan, you have to be living in the house. But I also know there’s ways around that. Or I could house hack it as well..
My goal is to buy a multi family home using a first time home buyers loan, and a rehab loan. And use a private lender for any down payment or other costs. Then fill it with tenants and use their rent to pay off the loans.
How do I go about this? What’s my first step? Who can I talk to about this?? And what else do I need to know that I might be missing?
Thanks!!
@Jacob Schultz Sounds like for purchasing and rehabbing a place you're going to live in, the 203(k) loan would be a good option. First step is to work on your credit. Get a secured credit card, or two, make on-time payments for a year and don't max it out. That should hopefully get you to a score in the 660 - 700 range so you can qualify.
Good luck and welcome to BP!
- Tom