First time home buyer but with investor mindset

Phoenix, Arizona
Starting Out
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First time home buyer but with investor mindset

Jimmy Rojas
Member since 2020 · 168 posts · 50 votes

I have good credit, financially in good position, no debt (at all), have enough saved for down payment ,i been looking at homes recently but gave myself a lil break , seems like houses atleast in Az are sitting and forcing the price to go down and with that investor mindset i most times offer up to $30k b elow listing, I put some offers on homes, some i got accepted i just didnt pull the trigger as im also worried about being tied down to a mortgage, right now my rent is a fraction of what my mortgage would be if i pulled the trigger on any of them homes.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3d

If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

Good luck with whatever you decide to do!

[email protected]248-209-6824
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4d

    @Jimmy Rojas

    i am not following this. you had offers accepted but didn't pull the trigger? what does that mean?

    the best way to start investing is with a house hack. and it's not a cash flow strategy, it's an equity building strategy.

    i hope that helps

    0Reply
  • Nathan Shelby
    Rental Property Investor · Oxford, MS · Member since 2019 · 13 posts · 1 vote
    4d

    I’d love to know where you’re getting accepted offers 30k below listing lol.

    I agree with the first comment. House hacking is the way to go to get to started.

    0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 250 posts · 96 votes
    3d

    With your credit, savings, and no debt, you're in a good position to explore different financing options. I'd focus on finding a monthly payment you're comfortable with rather than just getting an offer accepted.

    Have you compared different down payment scenarios to see what would make the monthly payment work for you?

    0Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      3d

      Right now im feeling comfortable, paying a $1k - mortgage, here in Az that will get you a condo or maybe a townhouse.

      0Reply
  • Sal Bossio
    Member since 2026 · 5 posts · 0 votes
    3d

    Jimmy, being nervous about getting tied down is honestly a healthy thing to think about before you sign. One way to look at it, the mortgage is bigger than your rent but part of every payment is going to principal, and if you ever move the house can become a rental. So run it both ways. What's the payment if you live there, and what would it rent for if you moved out in 2 or 3 yrs. If the rent covers most of the payment you're not really stuck.

    Also since you'd be owner occupied you can put a lot less down than an investor would and keep more cash in the bank. And when homes are sitting, a lot of sellers will pay toward closing costs or a rate buydown. Ask for that instead of only knocking 30k off the price, sometimes the credit helps your monthly more than the price cut does. Have your lender run both versions side by side.

    Heads up I'm a loan officer with Barrett Financial, so that's just what I see from the lending side here in AZ.

    0Reply
  • Joe Piccirello
    Lender · Peoria, AZ · Member since 2026 · 35 posts · 10 votes
    3d

    Jimmy, the rent vs. mortgage gap is the part worth putting real numbers on before you write another offer. Take one of the homes you almost bought and compare the full monthly payment (principal, interest, taxes, insurance, and any HOA) against your rent, then factor in the equity you'd build and what repairs usually run. If the gap still feels too big, a middle path that fits an investor mindset is a place where part of it can be rented out, like a room or a casita, so someone else covers a chunk of the payment. It also helps to get quick quotes from a couple of lenders before you're under contract again, so you know your real numbers and you're not deciding on a deadline.

    0Reply
  • Jimmy Samaha
    Staten Island, NY · Member since 2013 · 127 posts · 61 votes
    3d

    One thing I don't see mentioned is how long you'd realistically stay. Buying and selling both cost money, so if you move within a couple of years, renting can come out ahead even with the equity you build. Run the full monthly cost on one of those homes, taxes, insurance, and maintenance included, and compare it to your rent over the number of years you'd actually stay. Also keep a solid cash cushion after the down payment, since you'll be the one paying for the roof or the water heater now.

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 612 posts · 254 votes
    3d

    @Jimmy Rojas You're in a great spot with good credit, no debt and savings for a down payment, and it's smart that you're not rushing. Feeling nervous about a mortgage isn't a bad sign. It usually means you're taking the commitment seriously. A lower price is only a good deal if you'd want to own the home anyway, so I wouldn't buy just because you got a discount. When you compare to renting, look at the full monthly cost of owning, including taxes, insurance, maintenance and HOA fees, not just the payment. Also factor in how long you expect to stay, since buying tends to make more sense the longer you stay put. If your rent is far lower, the difference can keep growing your savings or investments while you wait for the right property. If you do make offers, be careful about backing out after one is accepted, since you could lose earnest money depending on your contract's terms. It may help to only offer on homes you'd truly be happy to own. Just keep in mind this is my general take and not financial advice, so run your own numbers with a lender or advisor. Whatever you decide, you're making it from a position of strength.

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    0Reply
  • Andrew Palumbo
    Technology · Member since 2026 · 8 posts · 2 votes
    3d

    The mortgage being way more than your rent is normal, and it's not really the right comparison. Part of every payment is principal, which is basically you paying yourself.

    The fairer comparison is the money you never get back: interest, property tax, insurance and upkeep. Add those up for a year and compare to a year of rent. If they're close, buying makes sense. If they're way higher, keep renting and don't feel bad about it.

    And if you're nervous about being tied down, that's one more reason for the house hack others mentioned. Rent from the other unit or a roommate makes it a lot easier to sleep at night. It also means you could move out and keep it as a rental later instead of having to sell.

    0Reply
  • Dan Duenas
    Lender · Irvine, Orange County · Member since 2026 · 61 posts · 32 votes
    3d

    The hesitation is the data, not a character flaw. A few honest filters: (1) How long will you actually stay? If it's under ~5 years, transaction costs usually eat the 'deal' — even $30K under listing. (2) Run the real monthly number — mortgage, taxes, insurance, HOA, maintenance — against your current rent, not just the mortgage. If the gap wrecks your savings rate or your freedom to move for work, renting isn't losing, it's staying liquid. (3) Being tied down is a real cost at your stage: a mortgage limits where you can take a job and how fast you can pivot into investing. Buying right is better than buying now — the next $30K-under deal will come along, and you'll pull the trigger when the payment and the timeline both make sense.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3d

    If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.

    I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

    To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

    Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.

    I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.

    I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

    After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.

    While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.

    Good luck with whatever you decide to do!

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    2Reply
  • Brandon Harwood
    Property Manager · Chandler, AZ · Member since 2026 · 11 posts · 1 vote
    3d

    Jimmy, I'm with Renters Choice Homes. If keeping the home as a rental is your backup plan, I'd test that separately from whether you can afford to live there. Start with comparable rents, then account for vacancy, turnover, repairs, larger replacements and management alongside the mortgage, taxes, insurance and HOA. Rent covering the payment doesn't necessarily mean positive cash flow. Which Phoenix-area neighborhood and home type are you considering?

    0Reply
  • Aaron Brown
    Lender · Phoenix AZ & Denver, CO · Member since 2026 · 4 posts · 1 vote
    3d

    Being nervous about the payment is worth listening to. I'd ask your current lender to go deeper than simply telling you what you qualify for. Have them model one home you seriously considered using different down payments, a price reduction versus seller credit, and the complete payment—including taxes, insurance, HOA, and mortgage insurance when applicable.

    Also compare that payment with your rent, expected maintenance, cash left after closing, and how long you realistically plan to stay. If the lender is only showing the maximum approval or isn’t willing to walk through those tradeoffs, getting a second perspective may be worthwhile.

    A discounted house is only a good opportunity when the ownership plan and payment both feel sustainable. If you’d like, you’re welcome to reach out. I’m licensed in Arizona and happy to help you compare a few scenarios without pressure or obligation.

    0Reply
  • Ryan BrownPro Member
    Real Estate Agent · Louisville, KY · Member since 2022 · 65 posts · 21 votes
    3d

    @Jimmy Rojas, you're in a great spot, and I agree with the people saying the hesitation is worth listening to. But I'd look at what your accepted offers are telling you. If sellers are taking $30K under list, you have real leverage right now. Markets don't stay that way forever, and buyers who are ready when the leverage is on their side usually do better than the ones who wait for it to feel perfect.

    As an agent, I'd also be careful about how many times you get an offer accepted and then walk. Beyond the earnest money risk Divin mentioned, listing agents talk, and you don't want to become the buyer whose offers nobody takes seriously when you finally find the right one. Decide what you'd actually buy before you write the offer: price range, payment, location and type of property. Then only offer on homes that check those boxes. That way an accepted offer means you're buying, not deciding.

    Since you mentioned a $1K payment probably means a condo or townhouse, keep the investor side in mind there too. If your plan B is to move out and rent it, check the HOA rules before you buy. A lot of associations limit or ban rentals, have minimum lease terms, or cap how many units can be rented at once. HOA fees also go up over time and eat directly into what it would cash flow as a rental. A townhouse with an HOA that allows rentals is a very different investment from one that doesn't.

    On rent versus mortgage, remember your rent will keep going up, but a fixed-rate principal and interest payment won't. The gap that looks big today usually shrinks every year you own it. That doesn't mean you have to buy now, but it's worth including when you run the numbers.

    [email protected]502-889-0122
    0Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 916 posts · 319 votes
    2d

    @Jimmy Rojas good to see you again. Being careful about getting tied down is fair, but I'd compare the mortgage to your rent plus what you'd make from renting out part of the place. That's how my first one worked. We lived in it while we fixed it up, and that's what made the numbers work. A duplex or a house with a separate space can change that payment a lot. On the offers, $30K under list is only a deal if the house is worth what you're paying. I'd figure out what it would actually rent or sell for before deciding. Let us know what you decide.

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    0Reply
  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 113 posts · 104 votes
    2d

    Jimmy, having good credit, no debt and your down payment saved is a great spot to start from. Taking a breath before you sign is smart, not a weakness.

    One thing that helps with the investor mindset: compare the right numbers. Your mortgage next to your rent is not a fair test if the building can pay you back. On a 2 to 4 unit building you live in, the rent from the other units goes toward your payment. A conventional loan allows 5% down on an owner occupied 2 to 4 unit, and FHA allows 3.5% down on a two unit, so the cash to get in can look a lot like a single family home.

    When you run a building, use rent you can prove from current leases or similar rentals nearby, and set money aside for repairs and the month a unit sits between tenants. If what you pay after that is close to your rent today, you are building equity for about the same monthly cost.

    Sellers accepting your offers tells you the market is giving you room. You are closer than you think.

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    1Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      2d

      I would love to get a duplex +, but in Phx,az those go for more than what i feel comfortable spending and being in debt to.

      0Reply
  • Juan Hasbun
    Lender · Fort Lauderdale, FL · Member since 2020 · 49 posts · 12 votes
    2d

    It sounds like you're in a strong position financially, which is a great place to be. Honestly, from an investor mindset, I don't think the question is "Can I buy?" but rather "Should I buy this particular deal?"

    If your current rent is significantly less than what your mortgage payment would be, there's nothing wrong with being patient. One of the biggest advantages investors have is the ability to wait for the right opportunity instead of forcing a purchase just because they qualify.

    I'd ask myself a few questions:

    • Am I buying a home primarily to live in, or am I viewing it as an investment?

    • If values stayed flat for 3-5 years, would I still be happy owning it?

    • Does the monthly payment fit comfortably within my budget without changing my lifestyle?

    • Would I have the option to rent the property out down the road if my plans changed?

    The fact that you've had offers accepted and still walked away tells me you're being disciplined rather than emotional. That's usually a good trait in real estate investing. A lot of people get into trouble because they're afraid of missing out.

    Also remember that the best deal isn't always the one with the biggest discount from list price. Sometimes it's the property with the strongest long-term fundamentals: location, rental demand, future flexibility, and a payment you're comfortable carrying.

    From my perspective, if rent is a fraction of the cost of ownership today, I'd continue running the numbers and only pull the trigger when the property makes sense both as a home and as a long-term asset. There's nothing wrong with keeping your powder dry until you find a deal that gives you confidence instead of hesitation.

    You're already doing what many successful investors do: staying patient, making offers, and letting the numbers guide the decision rather than emotions.

    1Reply
  • Marc MoraPro Member
    Investor · Member since 2026 · 41 posts · 3 votes
    1d

    What are you trying to do in REI?

    0Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      1d

      What most on this forum are here for build wealth 😀❤

      1Reply
    • Marc MoraPro Member
      Investor · Member since 2026 · 41 posts · 3 votes
      1d

      I have a good amount of experience with property ownership. Might be able to connect you to resources and people. Shoot me a message! Always like connecting with new people

      0Reply
  • Edward O'Neil
    Member since 2026 · 7 posts · 1 vote
    1d

    So, while you are paying someone else's mortgage, why don't you buy a rental of your own and have someone pay Jimmy's mortgage? This whole "sitting on the sideline and waiting" phenomenon that going on in RE is mind blowing.

    0Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      1d

      Im currently living in a empty house a family member owns that is paid in full so no mortgage, if i would tell you how much im paying rent all util incl, you would flip 😀❤

      0Reply
  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    23h

    You don’t want to get tied down to a mortgage. Good. You need to consider that you don’t want to get tied down to being a landlord either. You simply might not like it.

    Remember also that it’s not important to get big quickly, just start.

    So with that in mind, consider buying a duplex and rent out the other half. If it cash flows, great, if not, then consider the minor negative cash flow your cost of learning whether you want to be a landlord. Get a tenant and live it for 3 years. With any luck you’ll have a vacancy or two in there and you’ll see how you react under pressure.

    If everything is good, buy another duplex, live in it and rent out the first building entirely. Repeat another 2 years or so. Decide whether being a landlord is a hobby or a major side gig. If it’s a major side gig, buy a four-flat, rent out the other three units and your second building entirely. Keep that for 3 years.

    The point is to stop where you are comfortable. Want to get bigger? Great. Now decide what types of buildings you want and sell/exchange the three buildings you have to get into the niche you want to be in. Or stay where you are, or get out entirely.

    Find out if you like being a landlord first. Numbers are secondary.

    Oh, your wife has veto power over all of this. If she ain’t happy, ain’t nobody happy. Period.

    1Reply
    • Jimmy Rojas
      OP
      Member since 2020 · 168 posts · 50 votes
      4h

      Well its a good thing im single no dependants lol, where i live even a duplex starts at $450k, that is something i dont want to risk or get tied down to, im currently looking at close to move in ready single family houses on the range of $300k -, houses here are sitting and sellers are dropping prices so currently im being patient.

      0Reply
  • Randy Schell
    Member since 2026 · 112 posts · 14 votes
    19h

    Not pulling the trigger until it feels right is a perfectly fine place to be, and I'd never rush you. Paying a fraction in rent while you watch the market gives you time to look at what an older house would need, like the roof, electrical and plumbing age, since insurers are getting picky about those.

    Randy, Bunklow

    1Reply
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