Contractor · Palm Bay, FL · Member since 2021 · 2 posts · 2 votes
Hello everyone, I'm new to biggerpockets. So I'm not sure if I've done this right but hopefully I can get some positive feedback. So I am getting ready to start looking for my first investment property and wanted to know which strategy of financing would be best for my scenario. I'm located out in Palm Bay FL and realized with the market down here my best investment strategy would be long term rentals with a new construction home. (New construction homes are selling for 220k-300k currently) With great rental potentials. I understand that getting a conventional loan will cost me to put 25% down (55k-75k) but with that it would take me about another year and a half to save up. I'm currently at 20k and want to try getting my first property as soon as possible. I do currently own my home I purchased last year but don't have enough equity for a HELOC just yet. Hopefully I can get some great ideas from everyone, I know they're are tons of strategy's out there that I still don't know or haven't heard of.
@Sophaul Ajay Proeung can you move out of your current home and rent that out? You could buy one of the new construction homes with a low down payment loan for owner occupants and live there.
@Sophaul Ajay Proeung consider a partnership with a local MCA company. Monthly returns increase those funds quickly while you continue either working or even looking for properties. We get 1099's to report our earnings, just fyi. We placed all of our real estate reserves since September and has only increased our buying power since.
@Sophaul Ajay Proeung can you move out of your current home and rent that out? You could buy one of the new construction homes with a low down payment loan for owner occupants and live there.
@Scott Schuetz Yes, I've considered doing that because I am a veteran and I have access to a VA loan. The only thing stopping me is that I'm married and I'm stilling discussing doing that with my wife. But thanks Scott, I definitely think that will be my best strategy to go with.
As Scott suggested, that's what we're doing. About to move into a new construction (upon completion) then rent out our current home. With the way the market is right now, we're planning to do this every year to get in with cheap fixed 30yr money and low down payments then rent out after the year is up and we move again. Assuming it's newer build it shouldn't have major issues for a while so slimmer margins aren't as bad in the mean time until rents raise with the coming inflation.
@Sophaul Ajay Proeung - I agree with what the guys said about YOU living in the new construction, but if that doesn't work for you I'll give you another option. We occasionally wholesale just because we can't keep all the houses our team is bringing in, and my husband, who is the one running our business full time, has started offering owner financing on some of the wholesales, typically asking for $15-20K down. From what you said that's what you are working with so you would still need some money for the rehab but it's another option for you. That way you can get in, rehab, rent and refinance. He can also recommend a few companies to refinance with. Message me and I'll give you his info if you are interested.