Updated about 8 years ago on . Most recent reply
Owner-Occupant College Investment
Hey everyone!
I am just learning about real estate investing and in need of some advice! Here is the situation and my plan for making it happen. I am a junior in college in Waco Texas and currently renting out a place for 600/month. I found a house across the street that is for sale and I am interested in buying it for my first investment property. The house is listed for 190k and has been on the market for over 90 days. The property is rented out at 1800/month until may 2018. I would like to put an offer a bit lower than the asking price, around 175-180k. To my knowledge, if this offer is accepted and since I would be a owner-occupant of the property, my down payment would be only 3.5 percent of the purchase price. However, I do not currently have the $6,300 needed for the down. My solution is to take out a loan for $7,500 to cover down payment and closing costs, co-signed with my parents. (I don't have any credit built up) I would pay off this loan as quick as I can through a job as a server and the cashflow I get from the house. Assuming all goes to plan, I would now have ownership of the house, with tenants living there until May 2018. I will move into the home June 2018 with roommates, they will pay for expenses through rent. Again, I am very new to real estate and am seeking advice! Does everything in my plan make sense? Also, is everything I said legal and accurate?
Thank you!
Garrett
Most Popular Reply
@Garrett Collins You lost me where you said "owner-occupant". It sounds like to me you are planning on using the property as an investment property instead of a owner-occupied until the lease it up. I do not think you can legally do that. I believe the loan program you are talking about will require you to owner occupy the property much fast than May.