Looking for advice to get first deal

Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes

1mo

I would personally use 5% down if you can. It’s generally better to keep cash to upgrade the place slowly over time. A successful house hack is one where it reduces What you’d normally pay for rent and breaks even/cash flows upon move out

[email protected]

Brick House CPAs53 Reviews

Website View Page

1 Reply

Justin Tulman

Lender · Boca Raton, FL · Member since 2026 · 16 posts · 6 votes

1mo

You’re asking the right question because I wouldn’t look at this simply as “keep saving versus buy now.”

I’d first work backward from the type of property you actually want to own. If the goal is a duplex that you’ll occupy while renting the other unit, I’d have someone run the numbers specifically as an owner-occupied two-family scenario rather than assuming the $325K qualification you received tells you everything you need to know.

I’d compare three things: what purchase price you can realistically qualify for today, what your total cash requirement would be, and what the numbers might look like when the property has rental income from the other unit.

If there is still a meaningful gap between what works financially and what duplexes actually sell for in your part of Mercer County, then you have useful information. You can decide whether to keep building cash, broaden the search area, adjust the type of property you're targeting, or revisit the plan as your income and savings grow.

I wouldn’t rush to buy simply for the sake of getting started. But I also wouldn’t assume you need to wait based only on one loan amount somebody quoted you. A proper two-family scenario analysis would be a good next step. Please keep the questions coming and congratulations on the first step, getting advice!

0 Reply

Benjamin AakerPro Member

Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes

1mo

Have you looked at 3 and 4 unit properties? You can often get a better bang for your buck because they don't have the retail price bump that others do. Live in one unit and rent out the rest.

0 Reply

Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 929 votes

1mo

Quote from @Emily Croes:

Hi, my names Emily. I'm 25 from central New jersey (mercer county area). It's a pretty expensive market. single family houses go for average $450k. I've been working my first 9-5 for little over 1 year. I bring home $3,700 a month and i'm putting $2k a month towards a down payment and $500 toward investments. I currently live at home i'm not urgently looking to move out but I want to get started on my real estate journey. I've saved up $20k in my HYSA and have $20k in a brokerage account that I really don't want to touch but I of course it's an option. I wanted a way to make more capital fast so I wanted to try wholesaling but it's been almost a year and I haven't gotten any deals (with my 9-5 I haven't been putting as much time as I should towards it) My main goal is to buy my first property and house hack. I LOVE the idea of people paying off my mortgage for me. I really would like a duplex but they go for like 600-800k around here. I talked to one lender so far they said with my 795 credit score and $0 debt I could qualify for $325k loan. But I need advice on what's my best course of action here. Should I keep saving and trying to wholesale, or go for finding my first property even thought I feel like I don't really have a full proof plan yet. Also I know i could get 3.5% down if I live in the property and 20% down if it's solely an investment property. I definitely need to learn more about all the loan options.

Hey Emily, you’re actually in a solid position for 25. With $20K saved, strong credit, and no debt, I’d focus on getting your first house hack rather than waiting until everything is perfect. NJ prices are tough, so I’d also compare Midwest markets, where duplexes and small multifamily can be much more attainable. The goal is to get into a property that works and build from there.

[email protected]614-418-6081

1 Reply

Gregory AcsPro Member

Lender · MD · Member since 2025 · 182 posts · 70 votes

1mo

I think you're in a better position than you realize. With a 795 credit score, no debt, and the ability to save consistently, you've built a solid foundation. I'd keep learning about owner-occupied financing while continuing to save, but I'd also start analyzing properties now so you know exactly what you're looking for when the right opportunity comes along. Having a clear buy box and understanding your loan options will make you much more confident when it's time to make an offer.

3 Reply

Matthew Walker

Member since 2026 · 7 posts · 3 votes

3w

Justin's point about working backward from the property is the key one, so here's the arithmetic behind it, because it changes what you should actually be doing.

You're approved for $325k; At minimum FHA down on a two-unit that's a purchase price around $337k. A year of saving gets you to roughly $359k, two years to about $382k; past the down payment threshold, every extra dollar saved buys one dollar more house, not four. Duplexes in your range start at $600k. Saving is closing that gap at about $22k a year against $263k. That's not a plan, and it's not your fault; you're solving the wrong constraint. You have enough cash. What you don't have is loan ceiling, and saving doesn't move loan ceiling.

What does: on a 2–4 unit owner-occupied loan, most lenders will count roughly 75% of the projected rent from the other unit toward your qualifying income. If that unit rents for $1,800, that's $1,350 a month you're currently not being qualified on, worth more to your ceiling than several years of saving. So the specific ask for the next lender is a pre-approval run twice, with and without projected rental income on a two-unit. That one number tells you whether the duplex plan is real in Mercer County or whether Arman's Midwest point wins.

Two things to nail down first: your actual property tax bill for any specific address (NJ effective rates run well over 2% and Princeton and Trenton aren't the same planet; it hits DTI directly), and real market rent for the second unit, not an estimate. The whole plan hinges on that one number.

On wholesaling: a year, part-time, zero deals. That's not a knock; it's a full-time lead-gen business. That same year of saving produced $24k. One of those two is working.

I don't own doors yet either, so weight this as arithmetic rather than experience.

2 Reply

Looking for advice to get first deal

Looking for advice to get first deal

Most Popular Reply

6 Replies