All Forum Posts by: Jenny Serrano

@Shawn Mcenteer I would like a house hack strategy such as this but my fear is paying a high mortgage and not having a tenant in the unit quickly. Also, unfortunately there are no good multi units in my area. The closest duplex is in a high crime area where I don't anticipate tenants making payments. Edit: I'll happily take the info though because you never know.

@Melissa Justice thank you so much. I was wondering if I should quit while I'm ahead last night but I want to see how life fairs even with one rental property. I want to say I did accomplish my goal of getting into REI before I decide to move on from it saying it's not for me. I appreciate your kind words and advice on financing options.

I am currently saving for a DP on a property. I am a complete novice and was under the impression that one could get a 5% conventional loan as an investment property. Now I know it's at least 20% in my state of NJ. My goal was to get a $125k to $150k SFH and fix up what was wrong to rent out. I currently live with my mother who is low income and grandma who is ill; therefore, pursuing an FHA loan is not a viable at this time since I assist them with expenses. It would be difficult for me to continue assisting them as well as take on additional expenses of my own moving into a primary residence. I feel overwhelmed because I was ready to go on in on a property for $125k with a 5% DP and closing costs, only to find out that it was supposed to 20%. It kind of shocked me a bit and made me question how I can afford to do this. I don't mind waiting to grow my DP, it just feels like on this economy and how things are going, how can we safely save for these goals to get into REI and also travel through muddied areas such as having a child, health issues or other things as well as tenant relations once a property is yours? How do you maintain the grit to hold onto your goal when it seems like it might not be for you? How do you start this process from start to finish without being stressed, and if you are stressed, does that mean this isn't for you or can you grow a stronger attitude? I just feel lost...any help would be appreciated.

I appreciate this. I will definitely look into it. Aren't there FHA loans that are available with no money down? I understand there is additional cost for the insurance for the duration of the loan and that sucks but am I allowed to ask for more than the house is worth for the rehab costs? The duplex I want is 310,000 and I wanted at least 50,000 for the rehab. I apologize for the back and forth but if this doesn't help then I will need to save the 60,000 although it might be a while to save it.

Thank for the advice. I am just confused overall and I was going to make a separate post stating the following:

I understand there are different ways of getting a rental property with no money down but I'm so confused as this is my first time trying to get into something. I don't know much about taking over mortgage payments and from what I've read you still need to give the seller a lump sum. In my area I don't think the seller will be so desperate to just accept payments. Also, I still would need to pay off a lump sum for which I prefer a mortgage because I can personally control how quick/how slow I can pay off the property. 

If I were to get a down payment loan from the bank in addition to a loan for the difference from a mortgage lender then I have 2 payments a month to make and no cash flow on the property. So I am confused as to how I can get a property for no money down and not have to sacrifice cash flow. I mean I could get an FHA loan but the PMI is added when I don't have 20% down. Is this a reasonable loss to get into the game?

Hello all, I am an aspiring investor and want to buy a duplex. I don't have enough to cover a down payment and have research different ways to start. I just don't know which one is the safest since this is my first time trying to get into the game. 1st way I know of doing it is asking the seller if I can take over their mortgage payments but I don't understand how this works since they might have already paid part of the overall cost of the home. Another way I know of is by going through a bank loan for the down payment and then going through the mortgage lender for the rest. One final way is through USDA loan for rural areas but I don't know if South Jersey qualifies for that. Any help would be appreciated even if it is not directly related to the topic. For reference, I am 26 y/o and make 60k a year.