Financing for first rental property

[Darryl Griffin-Simmons]

Hello BP Family,

I’m new to real estate investing and have been binge watching BP YouTube videos this last week. I’m interested in multi family properties and want to land my first property this year. So, I’d love to meet some local BP family in the area if there’s a meetup or other networking opportunities.

I’ve been doing research to develop my CCC and would love to stack properties over the course of the next 5yrs. However, before putting the cart before the horse what would be the best financing options? 

My wife owns the house that we live in, as she purchased before we met. With said that could I do an FHA if I'm not on the mortgage/ loan? Or should we pull some equity out of current house to put for a down payment?

Thank you in advance!
Darryl

[Andrew Garcia]

Quote from @Darryl Griffin-Simmons:

@Andrew Garcia thanks for the reply. My name is not on our current primary residence. Thus, I was thinking of house hacking a multifamily unit in the local area initially to lower the required down payment. Our son is young, 2yo and can be flexible to move to a different daycare if necessary. The opportunity to move is prime before pre-K starts. We don’t have a lot saved for real estate investing since we recently were introduced to it this month. 

I appreciate your offer to help learn because we need it with just beginning this journey. When it comes to seeing what amount we would be qualified for, especially if going the FHA route, my name would have to be on the investment property mortgage since my wife already did an FHA for our current primary residence? Or my wife could do a second FHA as well once we decide to scale? I'd be glad to connect with you privately to learn more.

 @Darryl Griffin-Simmons, sorry I missed your reply! FHA loans cannot be used on investment properties. However, they can be used on 2-4 unit properties in which you live in one unit and rent out the other unit(s).

Your wife cannot be on another FHA loan. You can only have one FHA loan at a time. Therefore, your wife would need to refinance into a conventional mortgage to free up her FHA.

I would be happy to connect with you.