Hi Jake. I saw your post and decided to say hello. I just joined BiggerPockets and I’m in a similar situation. I’ve been renting rooms for nearly 9 years straight. And I mean being the tenant. I’m 47 years wise and have managed to get my credit score above 800. I live in the Denver area which is currently a real estate investor shark feeding frenzy. An extreme sellers market. I’m ready to pull the trigger. I am pre-approved for 2 different loans but $170k & $212k don’t buy much around here. I have $6k in cash saved up. I want to buy a property soooo bad and either rent out the rooms on a monthly basis or run an Airbnb. So we are both trying to get our first property. I’ll keep an eye on this post to see if anyone offers any good advice for us neophytes.
Oh, my loan for $170k is an FHA CHFA loan but I was told I only have to live in the house for one year if I use that loan. I wonder why you are being told 5 years. Hopefully someone will comment on this.
@Jake Calle there are several podcasts about house hacking a duplex for a first investment so if buy and hold interests you, I suggest listening to a couple of those for some more information. Letting the tenant pay your mortgage while you live in the other half of the duplex seems to be a great way to take advantage of the first time home buyer programs.
@Jake Calle You have to live somewhere. The 1st persons mortgage that you should be paying down is your own. You can buy a property with only 3.5% down so taking care of the home base shouldn't empty out your war chest either. Traditional lenders will let you obtain 10 30 year mortgages. This is bar far the most amazing financing available. Money is cheap right now. USE IT!
Buy your personal residence with 3.5% down then utilize your other 9 25% down mortgages on 1-4 unit properties. Once you get to that point move up to commercial buildings. IE Apartment buildings, retail, mixed use etc....
@Bob McGhee : I sure wish I could afford a duplex but the market here in the Denver area is just way to expensive and the feeding frenzy going on doesn’t allow any good deals to stay on the market.
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