What would you do if you were me?

Question

I just want to buy and hold for the first deal. I've been pre approved for $200,000 FHA and have about $10k for rehab/closing costs/down payment.

Nate Sanow · Answer

@Juan David Maldonado I tried to see what market you are in as that plays a role in what you decide to do, but, let me say to you that as stated above house hack is ideal.  But your comment about just wanting to buy and hold makes me think you just need to experience owning a property?  Is this your first purchase?  If so, this is going to sound weird but focus on getting into the best area you can.  Get something that when you move out will be desirable and something someone else will want to buy or rent.  You don’t have to get steps 1-100 figured out, just step 1, own SOMETHING.  If it’s in an area going up in value, that you enjoy, I say it “counts” in your investing goals, even if it’s not a perfect house hack duplex deal, you took courage and bought SOMETHING and refused to rent the rest of your life.  Good stuff.

Jordan Moorhead · Answer

@Juan David Maldonado househack whatever you're able to do whether it is single family or duplex you can make it happen. Get started, waiting doesn't help real estate

Sarita Scherpereel · Answer

Hi @Juan David Maldonado I'm not sure what market you're in or if that's enough in your market to get started. But if it is, I would definitely start with a house hack. Learn how to be a landlord from the inside. You can hold that property if you chose after you move out.

Matthew McKee · Answer

Juan, seems like you've been in the community for awhile, I'm sure you've heard of house hacking. I'm not sure what market you're in but that seems like the best place to start. have you read Scott Trench's book Set For Life? That book may give you a play-by-play of how to live the next couple of years.

Rick Pozos · Answer

Get to a free meetup in the area. Guess who has a free meeting on the second Wednesday of the month?? Network with other investors IN PERSON. Online stuff is ok, but in person you can really get to know others who are in the same area as you.

If you ask people, "How did you get your first deal?" or something similar, you will get people talking for 30 minutes. They will give you soooo many bits of information that you may be overwhelmed!!

Jacob St. Martin · Answer

Hello Juan, I am glad you want to get started in real estate! I would like to echo the sentiment of others that house hacking is an excellent way to get started. I don't know what type of property you are looking for but if I were you I would be looking for a single family house with the greatest number of bedrooms within your price range and rent out each room individually. It looks like you might not have quite enough money saved up yet to get started on your own but that doesn't mean that you can't start now! Have you considered trying to borrow the rest from a family member or friend? If you can't find someone willing to do that maybe you can bring on a business partner who will get a cut of the cash flow or equity in exchange for providing the rest of your startup costs. Keep working hard and get creative and I am sure you will make a deal happen!

Hamp Lee III · Answer

I'm a realtor in San Antonio, and there are a few multifamily properties around $200K.

Plus, if you're a first-time home buyer (altogether), there are multiple programs and grants to help with the down payment.

If you're interested and don't have a realtor, shoot me a message. I would love to discuss options to start your real estate investing journey.

Nathan Gesner · Answer

You may not have enough money.

$200,000 may buy you a duplex in San Antonio. You could purchase with 3.5% down as long as you occupy one of the units. That's $7,000 down. You'll need around $3,000 for closing costs. That leaves nothing for reserves after occupancy.

I'm not saying it's possible, but I am saying that it's unwise to spend your very last dime to make a deal happen. I recommend you save another $5,000 to give yourself a buffer.

Theresa Harris · Answer

What does $200K buy in your market?  If you are starting out and open (and the house prices work), buy a duplex or a place with a legal suite.  You can live in half of he duplex or in the main house or suite depending on your needs.  You will get the furthest ahead if you live in the suite or live in the main house and rent rooms in it as well..

Mike Eichler · Answer

What many of my buyer clients have done was start with a primary home loan, house-hack and then get a "second home" or "vacation home" at only 10% down. This has been very powerful for allowing your money to go much further.

Hope this helps let me know if you have any more questions!

What would you do if you were me?

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