What Would you do if...

[Melissa Gittens]

I recently had a discussion with a few real estate investors in my local area about what the next steps they would take if they recently purchased a home with an FHA loan and are looking to purchase another but only have 20K.

My answer to this scenario was to continue analyzing deals while saving up more money for 25% down and 6 months reserve on another property. I also suggested that if they are following a buy and hold strategy they should consider purchasing 5+ apartment building as opposed to single family homes. I think it all depends on your strategy and if the numbers work on any property.

What are you thoughts and ideas?

[Account Closed]

Originally posted by @Melissa Gittens:

@Account Closed Can you tell me how did you utilize your 401k to purchase homes? I've been doing some research on this lately, but love to hear how it worked for you.

 I got a loan against my 401k.  I think you can take out half of what you have in there up to 50K (or something like that).  And I used it to purchase and rehab a 40K home that now rents for $725.