A little about me (bullet points for brevity):
- Brand new to investing
- Watching BP YouTube podcasts
- Live in NY (upstate and downstate regularly)
- Full time job as iOS developer (I plan to continue this)
- $50,000 initial investing money
- $1500 monthly income to add to investing
- Real-estate goal: single, multi-family, and apartments to get to a $3000-$6000 monthly cash-flow
- House Hacking applicable (can move around)
- New to BP forums, so tell me if I should do this in a different format (or in intro forums)
My unique situation: I'm (obviously) looking for ways to make the best out of my situation. Important details that could be problematic are definitely welcome, but I'm looking for a general blueprint of plans which I could further research as well as problems with my plan.
I'll give my initial plan as a means to tell you the situation:
I have a friend who can build houses in the Albany, NY area. I take out a mortgage to buy land and the supplies + some labour money for the multi-family house, helping out all I can on weekends. After it's built, I move in, and rent out the other 1 or 2 rooms (FHA loan). I'll probably compensate my friend monthly for a while. I imagine the total cost of supplies to build will be around $150,000 - $300,000 and 8-10 months to construct
- What sort of deals could I work out with my builder friend?**
- Can buying land be bought with money from FHA loan?
- How, or can I even use the fact I have a friend who can build a house, work to my advantage?
Thank you all for the help! I haven't seen much on Buy vs. Building!
Updated about 1 year ago
Ive been thinking about the FHA. I wouldn’t take it out in order to pay for building the house. Either me or the builder would take out a loan. Then once the house is built, somehow it would transfer over to me? Would this require a refinance to turn it into an FHA? I think this is where I could work out some deals woth my builder friend. Possibly take out a loan obly for the supplies to build, and pay him monthly for labour. But I’m still not sure when and how the FHA comes in
it looks like there is an FHA one time close mortgage loan that might be the best option
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