All Forum Posts by: Derrick Casson

@Chris Mason So basically you're saying that I shouldn't count on the 5% down for buying a condo that I'm not intending on living in and just use the FHA loan for the first one and then use the 5% down on the next property I intend to buy. I currently have a job now that provides income so the income coming from the rental wouldn't be the only income that I have coming in to assist with my DIT.

I'm really just trying to see the best way to start off financing with using as little as my own money as possible. 

Hey guys, I have a quick question regarding the conventional loan as a way to finance my first property.  In my last post I mentioned house hacking and wanting to build a portfolio with a HFA loan starting out.  It was brought to my attention that there is a 5% down conventional loan that is available for first time home buyers only, here in Chicago.  With this new info, I revamped my plan into thinking about investing in a condo using that loan to start off with and rent it out.  Then after some time use the cash flow from the condo to help finance the HFA loan, and go from there.  

My question is, how practical is it to receive this type of loan on a condo and what are some of the things I should have in place before I go to try and get this loan.

I look forward to the responses and thanks for helping me out! 

@Brie Schmidt thanks for responding! So you're saying I could get the conventional loan with 5% down for the first rental property and then use the cash flow from that to get the second one using the FHA loan with 3.5% down and by the time I move out of the second property I can use the combined cash flow for the 20%+ for the house that I want to get later on. Is that right?

Hello everybody, I'm new to real estate investing and am currently just in the planning stages of how I want to get started and reading everything related to rental property investing. I have been reading "The Book on Rental Property Investing" and there's a portion on house hacking. This makes the most sense for me because I'm 24 and don't own a house yet and I am currently renting an apartment so house hacking would be a great thing to start with.  

So I get that, and that you have to stay in the property for at least 1 year, but my question is after that first year or two, how do you move forward? I can use the cash flow from the place I'm living in and renting out to buy a new property but I want to move out too and get a house for myself. How do I get a spot for me as well as be able to purchase more properties for me to rent out after that first year or two?