Noob questions on starting strategy

4 Replies

I am trying to find the best way to get into real estate investing with the situation I am in. My credit has taken a hit from being winter in the construction business. The current rental property I am at is right off the main road that feeds the back part of the neighborhood. My kids are now 3 and 1 1/2 years old. The wife is worried about this summer because of the kids running off near such a busy road.

From what I know a for sell-by-owner or lease option could work with my credit being low. I will be using taxes to get caught up and to use for the down payment. The goal would to get the house so the kids can play safely but also be able to use the equity from the house in time to purchase first rental property.

Any input on the strategy or even another strategy would be much appreciated.

I bought my first rental in 2002. Paid $2,900.00 Fixed it up myself and got it rented. You being in construction is perfect. Find a dirt cheap house and rebuild it. You could end up with a mortgage free home for your family. Then start repeating to build a rental empire.

By the way, in 1982 I was to be married in July. I started building in February a 900 sq ft house. We moved into it after our honeymoon. I was 23 and had only helped frame a house one time. I worked on the house in evenings and weekends. After that I built a bigger house and the 3rd one I built for my family was debt free. I was 32.

 You can make it happen.

@Arlan Potter My apologize, I should of been more specific on the type of construction I do. I do cable construction. Communication lineman. You are right, that is an excellent strategy. If only I had the knowledge for that type of construction. Thank you for your input.

I would suggest focusing on rebuilding your credit, paying off bad debt (high interest debt 8% or higher) and work on saving 25k. Create that financial runway. I understand the desire to get started right away. I am in a similar situation. Find out what actions you can take for free, today, and get after it. Make new problems by taking massive actions.

Good luck and happy hunting.

An FHA loan might just be your best bet, depending on your financials. But it's not very hard to raise your credit enough to qualify, I've done several time in less than 6 months. Just start paying off your bills fast, cut needless spending, if you want a house bad enough, you'll get there. Then you could look for a safer house with a mother-in-law that you could rent out to help pay the mortgage, you could find a house that needs to refinish a basement and rent that out. You have options, but you just should focus on getting out of debt. Summer is approaching and work will pick up, in the meantime try driving for lyft or something and create some extra income to get rid of your debt. It's a good route, safe and will work out.