What can I afford with $35k?

[Benj Ecker]

I'm looking for my first deal. Conventional lender who pre-approved me is a REI himself said 25% down payment on an investment property is standard. And they won't do a loan under $75k (since closing costs would be over 5%). So that puts me at $100k minimum purchase right there for a conventional loan.

Let’s say I have $35k I could invest. With the math above that puts me at a ceiling of $120k ($30k down payment plus closing costs).

Is that right? Would I really be stuck with a window of $100-120k?

[Jacob Lapp]

@Benj Ecker

Last year I did my first deal for 25k.

Property type triplex single house in front, duplex in back.

Listed for 330k got it for 280k plus 3k sellers assist which is subtracted from cash to close and 2k in commission for representing myself as buyers agent.

The numbers were as follows mortgage,taxes,insurance $1950

Expenses to fix up 3k (added a half bathroom in single house and cosmetic repair)

Water, sewer, electric all split to tenants

I pay $400 a year for trash.

Single family $1400

Bottom duplex unit $950 (he cuts grass and does some minor property maintenance)

We lived in the other unit.

Just moved out and am getting additional $1250 for our unit.

Now flowing $1600 a month.

Because we claimed residency we were eligible for first time home buyer 5% down.

Ask your mortgage guy if this 5% down first time home buyer is available in your state. If not fha 3.5% down claiming residency would be a good alternative.

Hope this helps