My Master Plan

[John Scully]

I have been creating a plan for my first property. Tell me if I'm crazy or rational. I want to cap out an FHA loan on a 4-unit in my county (which is $900,000). I plan on saving up 3.5% of that in the next year, which is ~ $32,000. I'm 18 right now, and have been working under a 1099 job for a year now. By next year, I will have established credit, a two year track record of income, and hopefully $32,000 if I eat peanut butter jellies everyday and save my pennies.

Does this plan sound feasible? Am I getting into something that will cost way more than I know of? Let me know, because I need to tweak my financial plan to account for anything that could possibly bite me later. Thank you all in advance, I've gotten much helpful info from the people that have replied thus far, and I hope to talk to more of you!

Thanks!

[Blake B.]

For your first deal, I would say you’re on the right track. There are other fha products, like for example you find a four unit that is a foreclosed property, fha may require as little as $100 for a down payment and will fund repairs to get the property in a position to rent. Just something to think about.