Flipper/Rehabber · Honesdale, PA · Member since 2018 · 2 posts · 1 vote
Hi everyone, I'm 24 years old and i have about 15k to put into real estate & good credit i live in northeast pa and i would like my first deal to be within reasonable distance from me. I found a duplex and other deals i would like to pursue but don't wanna split or live in a side and a lender i talked to so far wants 25% for conventional loan. Rentals is where i would like to be long term. I'm very new to all forms of real estate but I'm handy and capable of many different things. i still work my normal job 50 hours a week. Should i continue to search for a lender or bank that will work with me or take a step back and look for a flip to build myself some capital? Just looking for the best way to get started. thank you
@Luke Davis Is a house hack a goal of yours in the future? Study the requirements for an FHA loan like a book and make sure to set yourself up for success. Examples would be building up your credit, getting the most recent tax returns for the last 2 years in the same field, building up capital for the down payment, closing costs and 6 months in reserves so you can use as much of the rental income from the other units as your own income when you getting qualified. These are some barriers I had to make sure to be able to climb over. Let me know what questions you have.
To Echo Josh, house hacking is a great solution for people that have low funds. There are plenty of duplexes in the Northeast PA region that are affordable. I would suggest building up a little more cash as reserves in case costs arise so you don't go underwater.
Many regions in that area also qualify for USDA loans but in this market its tough to get a buyer to agree to wait.