So I am looking to buy my first rental property sometime next year in Knoxville TN. I have been saving up money, but I'm not sure how much is enough for my first buy. If I were looking to buy a house that cost around 100k via FHA loan, how much money should I have set aside?
It depends. Will you live in it? If so, then 3.5% down.
If not, then be prepared to put down up to 30%.
1) If you live in it (Ex. buy a duplex and rent out the other side) you an use can FHA loan at 3.5% down.
2) If you are not going to live in it you will get an investment loan which usually requires a 20-25% down payment.
Other possible considerations: closing costs (a few thousand $), repair costs, insurance/property taxes, Several months reserve loan payments
@Eric Hernandez that's a bit of a loaded question. You should definitely have reserves to cover your own living expenses(x 6 months) and the reserves for the rental property will be determined by the monthly costs associated with operation (x 3-6 months). Sorry I couldn't give you a set amount. Best of luck to you!
what about a 203k loan. I haven't gotten my 1st property either. And saving money is not as easy as people think, when u have responsibilities and a small Courier biz
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