I am in search of funding for my first rental, I need advice.

[Marshelle Lewis]

I am looking for ways to get funding for my first rental property. I am in Mississippi, thanks in advance

[Stephanie P.]

Originally posted by @Marshelle Lewis:

I am looking for ways to get funding for my first rental property. I am in Mississippi, thanks in advance

Here's what you need to do.

House hack. Find a multi family property in your area. Buy it and live in one unit and rent the other(s) to have the mortgage paid. Use FHA backed financing because the down payment requirement is low. There are probably other local grant programs that can cover your down payment. If your lender doesn't go down to a 607 score, find one that does (PM me and I'll send you a referral, we don't do FHA, but refer them out all over the country). Once you find a lender ask him/her to pull credit and the do a "what if" scenario meaning ask them to see what you would have to do to increase your score. Maybe it will jump 20-40 points by just paying off a collection or judgement or it may go up by decreasing your balances. There's a huge difference in price between a risky 607 score and a 640 or 700.

I'm going to lay this out there; buying a house is not for everyone.  You have to be financially prepared for things to break and be replaced; major things like air conditioners or disasters like a broken pipe.  It's best to have your finances in order before you take on home ownership.  Having said that, it is the best way to obtain generational wealth.

Poor to average lenders will tell you no.  A good lender will counsel you and turn that no into a not now.