newbie from Texas and need a little help

6 Replies

I'm 19 and have been looking into real estate investing for quite a few months now and I need a little help/advice/feedback.

there's a duplex for sale in a middle-class neighborhood that I've been looking at. it's $95k with 2br/2ba on each side and it's both sides are already occupied with tenants (how great is that $) anyways, if I were to get an FHA loan would I HAVE to live in one side of the duplex or can I keep both tenants occupied and start collecting both rents right of the bat?

and also would like an experienced landlord to inbox me to help me further along.

thanks!

@Oscka Flocka

With an FHA loan you must occupy the property.

At a price of 47.5k/unit you need rents to be around 785/unit.  You're going to have to provide more info on this potential deal if want additional feedback/advice. 

2148649796

sorry about that, was just wondering about the FHA loan. what percentage would I need to put down if I want to start collecting both rents off the bat and not have to occupy one side?

For most conventional loans for investment properties you would need 20-30% down. 

Originally posted by @Paul Ewing :

For most conventional loans for investment properties you would need 20-30% down. 

 in your opinion what would be a better move for me?

I have just about 5% or the 95k right now... (putting back as much as I can a week) should I just get a conventional loan for the rest of the 15% and buy the house and start collecting rents from both sides? (I'm only 19 and still live with my parents, I don't have to move out if I don't need to. not having to move into the other side = more cash flow)  

or should I get an FHA loan and occupy one side and collect from the other side?

thanks!

@Oscka Flocka I think you misunderstood.  For most conventional loans you will need $19k to $28k in cash to put as a down payment on a $95K property.  You may be able to work out some other ways to do this deal with less money, but banks aren't real keen on investment loans without skin in the game.  Check out @Brandon Turner 's book on Investing with No or Low Money Down available here for some ideas on ways to get around the conventional loan down payment requirements.

http://www.biggerpockets.com/nomoney