Refinancing my 1st home: Seeking advise for my real estate journey

[Nimit Gupta]

Hello,

I am a first time home buyer and I'll be purchasing my 1st house (primary residence) in the next 2-3 months. 

Value- around $400K

Down payment- $25K

Loan amount- $375000

Questions

1) Since I am paying only 6.25% down payment, how soon will I be able to do a cash out refinance?

2) My objective is to buy my 1st investment property as soon as possible after buying the primary residence. What will be the best plan of action for this?

Thank you for taking time to read this query. Looking for some good advise.

[Zach Wain]

@Nimit Gupta - you may want to consider buying a primary home with the min downpayment allowed (whether FHA works for you at 3.5% down, or conventional at 3% down) and live in the home for 1 year. Then, rent that property out and buy a new primary home with 3.5%-5% downpayment. Live in that home for 1 year, rinse and repeat.

That is the cheapest way to finance rental properties, buy them as a primary home and after you have met your occupancy requirements of 1 year rent the property out and buy a new primary.

Let me know if you questions on that structure