Looking to Purchase First SFH Property with Friend
My roommate and I from college are looking at purchasing a SFH together. I just wanted to see if there was anything else we weren't keeping in mind for our analysis as well as things to keep in mind during the purchasing process. Here is our thought process: we are looking at purchasing an investment property to live in and rent one room out (to another friend).
House Criteria: 3BR/2BA outdated house in neighborhood with above par school district.
Max Purchase Cost: $250,000
Would like to have $40k-50k total in available equity through a mix of purchasing below market value and ARV (plan to have realtor pull ARV comps) (would like to eventually refinance and pull out cash so that we can both purchase another investment property)
Exit Strategy: We plan to either rent or sell the property (depending on our agreement)
Financing: We plan on using a FHA loan for 3.5% down (we have offer letters from our companies which will hopefully suffice to gain financing)
Schedule:
- 1)We are going to find a realtor in the area
- 2)Get pre-approved for financing
- 3)Make offers on homes ($40k-$50k below market or to allow $40k-$50k increase in ARV)