First time home buyer

Investor · Phoenix AZ · Member since 2026 · 5 posts · 2 votes

Long time listener of BP podcast here looking to hopefully connect with locals that can point me in the right direction.

This will be my first home and I keep hearing the importance of having that first deal be a home run.

An FHA 203k loan on a multi family and house hacking sticks in my head as the most logical option. I'm totally open to more traditional ways and listening to what you might have to offer.

I am in EMS for work, So not in the financial space. Everything I’ve learned has been through the BP podcast and the classic Rich Dad Poor Dad.

Excited to start real-estate investing and learn from whoever I can!

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Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

@Nick Garcia

The 203(k) loan offered by the FHA is one great way to begin, and it will work even better if you are prepared to endure the renovations that come with it, just don't feel the need to nail everything right from the start. Start networking with real estate agents and lenders who are open to working with investors and learn how to crunch the numbers.

Good luck!

[email protected]832-776-9582 Podcast Guest on Show #469

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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
4w
@Nick Garcia
The 203(k) loan offered by the FHA is one great way to begin, and it will work even better if you are prepared to endure the renovations that come with it, just don't feel the need to nail everything right from the start. Start networking with real estate agents and lenders who are open to working with investors and learn how to crunch the numbers.
Good luck!
[email protected]832-776-9582 Podcast Guest on Show #469
NETWORTH BUILDERS5237 Reviews
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- Nick Garcia
  OP
  Investor · Phoenix AZ · Member since 2026 · 5 posts · 2 votes
  3w
  Thank you!
  0 Reply
Brad SeidBusiness Member
Lender · Licensed in 28 States · Member since 2026 · 206 posts · 71 votes
3w
@Nick Garcia Welcome to the community! House hacking can be a great way to get started. If you’re exploring financing options, I’d be happy to connect and help you look into potential lending solutions that fit your first investment. Feel free to reach out anytime!
[email protected]248-408-3855
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Noah CorwickPro Member
Realtor · Phoenix, AZ · Member since 2021 · 276 posts · 117 votes
3w
Hi Nick.
Getting into real estate with a MFH is a great way to kill many birds with one stone for sure.
The PHX MFH market is a bit odd, since they've only been built in specific pockets and the lowest price points (which are obviously Duplex's) are hard to pencil in numbers wise. Supply is also difficult as for example, there is only 1 MFH under $300k, 13 under $400k, and 51 under $500k
I creative way that I have worked with many investors (and have purchased myself) is what I call creative multi family, which is buying a SFH with a casita/guest house or the potential to easily add a one (the SFH already has a detached garage or shed for example). That way you are essentially still buying 2 homes for the price of 1, the numbers tend to pencil in better, and you have more inventory.
You can even house hack the main home and live in the casita if you want to capitalize on getting more rent.
The downside to this is that the casita/guest house typically individually metered though.
I'd definitely talk to a lender about the FHA 203k loan, as that will be a great loan product to have in mind with whatever route you end up taking. I'd recommend talking with @Clayton Silva about this.
Cheers!
[email protected]602-834-4617
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- Nick Garcia
  OP
  Investor · Phoenix AZ · Member since 2026 · 5 posts · 2 votes
  3w
  Awesome thank you! What do you think I should look into next if MFH doesn't work out? Traditional SFH and roommates?
  0 Reply
- Noah CorwickPro Member
  Realtor · Phoenix, AZ · Member since 2021 · 276 posts · 117 votes
  3w
  No problem! I would recommend looking into SFH with a casita and renting out the one you aren't living in.
  [email protected]602-834-4617
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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 967 posts · 349 votes
3w
@Nick Garcia Welcome! Love seeing a fellow EMS guy here. I did 20 years of EMS in PA before I got into real estate full time, so I get the schedule and the grind. House hacking a small multifamily with a 203k is a solid way to start. Just budget the rehab conservatively and pad your timeline, because those projects almost always take longer than planned. And don't stress about your first deal being a home run. A solid single you learn from beats waiting forever for the perfect one. BP is a huge resource, so dive in. Best of luck! 👍 Scene Safe - BSI.
[email protected]484-791-6200
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- Nick Garcia
  OP
  Investor · Phoenix AZ · Member since 2026 · 5 posts · 2 votes
  3w
  Thank you 🤘 appreciate the sentiment of not stressing out about the first deal.
  0 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
3w
Welcome! 203k is a great program for the rehab component and Low down payment.
While you’re analyzing deals, I’d be going to local meetups to connect with other investors and service providers in your area. Biggest ones would realtor, lender, and contractor.
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Cierra Aranya
Worthington, OH · Member since 2026 · 9 posts · 1 vote
3w
Welcome! House hacking a 2–4 unit with FHA is a solid first move, and the 203k adds rehab money into the same loan. A few things to know going in:

• You'll need to live in one unit for at least a year.

• 203k loans take longer and need a contractor bid and an inspection of the work. The Limited 203k is simpler if the repairs are smaller.

• On 3–4 unit properties, FHA checks whether the projected rent covers the payment (the "self-sufficiency test"), so run those numbers early.

• Compare it to a conventional loan for a 2–4 unit owner-occupied property, which can be a better fit depending on your credit and down payment.

Get pre-approved first so you know your real budget before you fall in love with a property. Good luck!

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Ashley RigsbeePro Member
Customer Success & Onboarding Specialist at BiggerPockets · Charlotte, NC · Member since 2023 · 152 posts · 55 votes
3w
Welcome to the BP community Nick! FHA on a 2-4 unit is a great house hack route. The $203k adds renovation money, but it's worth getting quotes from a few FHA lenders early. Is Phoenix mostly duplexes or fourplexes where you're looking?
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- Nick Garcia
  OP
  Investor · Phoenix AZ · Member since 2026 · 5 posts · 2 votes
  3w
  I’m looking at everything MFH. Whatever makes sense and drops my cost of living is the goal!
  0 Reply
G. Brian DavisPro Member
Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 903 votes
3w
House hacking a multifamily can be a great way to get started. I’d just get away from the idea that your first deal needs to be a home run. It needs to be a deal that makes sense and doesn’t put you in a financial hole.
Talk to a few lenders, learn the numbers, and analyze a lot of properties before you buy. Don’t be afraid to pass on deals. Your first deal will teach you a lot, but you don’t need to learn those lessons the expensive way.
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Brad SeidBusiness Member
Lender · Licensed in 28 States · Member since 2026 · 206 posts · 71 votes
3w
@Nick GarciaWelcome to the community! House hacking with an FHA 203(k) loan can be a great strategy to explore for your first investment. If you'd like help exploring financing options and finding a loan that fits your goals, feel free to reach out. Happy to help you get started!
[email protected]248-408-3855
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Aaron Zucker
Realtor · New York, NY · Member since 2019 · 71 posts · 28 votes
3w
Nick — welcome. The 203k basics are covered well above, so here's the part nobody warns first-timers about: the execution.
Most lenders technically offer 203k loans, but very few loan officers have actually closed many of them. The process is paperwork-heavy — contractor bids before closing, funds released in draws after inspections, a required contingency reserve on top of the rehab budget, and a HUD consultant on the Standard version. Because of that, closings routinely run 45-60+ days, and a lot of good contractors won't touch 203k work at all because they don't get paid up front. That shrinks both your lender pool and your contractor pool, and in a competitive situation a seller will often pick a cleaner conventional offer over a 203k one. None of that makes it a bad play — for a tired multifamily you're going to live in, it's one of the few ways in with 3.5% down — just go in with the right lender (ask how many 203k loans they closed in the last year) and line up your contractor before you're in contract, not after.
On your follow-up about a single-family with roommates if multifamily doesn't pencil: solid backup plan, and it's how a lot of people actually start. Two things to know. First, roommate rent usually won't count as qualifying income for your loan unless you already have a documented history of receiving boarder income — so qualify on your own income and treat the rent as a bonus. Second, check the HOA and local occupancy rules before you buy; some restrict unrelated occupants or room rentals, and finding out after closing is expensive.
Last thing: measure this first purchase by one number — your monthly out-of-pocket after the other unit or the roommates pay, compared to what you'd pay in rent for a similar place. If that number is a few hundred less and someone else is paying down your loan, the deal did its job, home run or not.
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Matthew PorcaroBusiness Member
Lender · Long Island, NY · Member since 2016 · 457 posts · 336 votes
2w
Hi Nick -

The 203k + house hacking strategy is how I got started. Bought a duplex with 9500 down, wrapped in closing costs and first 6 months payments while the renovation was happening. Built an immediate 130K equity, lived in one unit, rented out the other, moved out a year later, rinsed and repeated.

Like many said above, most lenders offer 203k's but have no idea how to do them. They do like, 1 or 2 a year.

I've done several hundred over the years.

It comes down to finding a good deal to start. Place way more offers than you think you need to. Once you find a seller that's willing to negotiate on price, you bring in the FHA 203k consultant to create a work write-up with rough estimate of cost. As long as that cost aligns somewhere around where you were thinking, you move on to bringing in contractors to review the scope of work and give their bids. Once you agree on the scope of work, you submit that to the appraiser and they will appraise the property ARV based on the scope of work you provided. You can use any licensed and insured contractor. Once you agree on the price with the contractor, you submit that to the bank and as long as the appraisal is above (it almost always is) you go to closing.

Everything comes down to having a clear scope of work with the contractor up front. Also, not going for the cheapest contractor.

As long as you have that, and a lender that structures the deal correctly, the 203k is by far the most powerful and effective home buying program out there.
The 203k Way
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Marc MoraPro Member
Investor · Fort Lauderdale, FL · Member since 2026 · 255 posts · 43 votes
1w
@Nick Garcia , let's connect. I can help with strategy! Welcome to BP. The home run talk around a first deal puts a lot of pressure on people, and a solid first one you can live with is usually plenty. Whether a house hack fits has a lot to do with how much rehab you want to take on around EMS shifts, and how you'd feel living that close to your tenants. I can help you find good people to talk to. Do your shifts leave you whole days off?
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Joe Piccirello
Lender · Peoria, AZ · Member since 2026 · 52 posts · 14 votes
5d
Nick, your follow-up about a single-family with roommates is worth comparing alongside the multifamily idea, especially since lowering your own housing cost is the goal. I'd run both with one room or unit empty and money set aside for repairs, then compare what you'd personally need to cover each month. Keep the rental budget separate from the income a lender actually documents for the loan, and ask how each scenario would be evaluated rather than assuming the rents are treated alike. With EMS work in the mix, also put a realistic time budget next to the rehab budget. A manageable first place beats a project that only works when every room is full and nothing breaks.
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