Rental Property Investor · Fairview Heights, IL · Member since 2017 · 16 posts · 8 votes
Hello all!! I am a newbie with a strong interest in real estate investing, and to be honest I really want to do this with low or no money down. I have been doing research and I think for now I really want to start with subject to deals and then doing lease options with tenant buyers. I'm in the Fairview Heights Illinois area with my wife and 3 kids, I am currently a truck driver and I am trying to get started with real estate investing to eventually have more time with my family.
Rental Property Investor · Fairview Heights, IL · Member since 2017 · 16 posts · 8 votes
9y
@Brandon Johnson well, I'm looking for fsbos and just talking with them to see if I can create a win win situation, mainly targeting people who might need to get out of there home, and there are many reasons for that from my research.
Rental Property Investor · Oakland, CA · Member since 2016 · 602 posts · 250 votes
9y
@Jason Harris Hi Jason, a common trend of new investors looking to break into the real estate realm is by using a FHA (Federal housing administration) loan which is typically used by individuals with low income and do not have the capability of putting down a large down payment. However, this can be used by new investors to purchase homes since it only requires 3.5% down. Please note that if you choose this path, you will only be allowed 1 FHA loan to your name at any given time. You cannot have multiple FHA loans. There will also be a PMI which is a mortgage insurance along with your mortgage payments, please account for this because it will affect your cash flow. Cash flow is the money left after your pay all your bills (taxes, property taxes, mortgage, PMI). The most common strategy of using a FHA loan is to house hack which means that as you do your owner occupy of the property, you could rent out the other rooms inside yourself to offset the payments of the mortgage, if leveraged well you will be able to live rent free which is the goal of many house hackers.
Here are some videos and highlighting the advantages and disadvantages of FHA vs Conventional loans:
Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
9y
@Jason Harris There is a lot of power in the technique. There are some podcasts I'm told on BP that get into more detail. Since it is a complex transaction you probably want to study it pretty thoroughly. Send me a PM if you have any questions I can answer.