All Forum Posts by: Nick Bitz

Didn't want to post a pic because its yellow lol.(fresh paint coming soon)Seller is laying sod tomorrow! Its a 3 bedroom, 2 bath and being my first home I did an FHA. Mortgage is gonna be right at 1050 and comparable rentals in the area go for 1300. Not the best cash flow, but it'll work. Im also renting out the 3rd bedroom to my brother for 500 a month allowing me to save that much faster.

I finally pulled the trigger! I just bought my first home that will be my residence for the next year. Then I will convert it to a rental where it should cash flow decently. Scary, but its coming together.

Me and my partner will be purchasing our first rental property in march. Just wondering what the best way to acquire a mortgage and how to hold it. Should we put it in an LLC? Can we both be on the mortgage? Thanks for any replies. BP keeps me from going insane at work :)

@Elizabeth Colegrove My thoughts exactly. Like you, I feel like it would make sense if I could do 5% and then drop the insurance after I build equity. Also if I understand correctly there are more strict inspection processes for an FHA. I'm looking for something that needs a little work so I may run into some problems from that aspect.

@Elizabeth Colegrove 

When first starting out did you run into any trouble getting financing for the second home? Is the mortgage process the same because you are living in the house first as opposed to buying it strictly for a rental? Thanks for the input!

 Thanks @Hattie Dizmond 

I'm definitely thinking about an FHA. Although all the major banks have been trying to talk me out of it. (meaning its probably actually a good deal) Are there stipulations as to how long the house has to be owner occupied for FHA?

So here is a watered down summary of my plan, let me know if this is a viable idea. I am open to any suggestions from experienced investors.

By March of next year I will have 40k. I plan on using 20K to secure my first home. Something in the 100 to 120k range that needs some TLC (I live in DFW btw). Putting the minimum down and using the rest to renovate. This will be my live in project for a year or so until I finish and save up the money to move and turn it into my first rental.

As for the other 20k. I will be partnering with a friend who has 20k ready to match me as soon as im ready to go. With a combined 40k we plan on getting another rental in the area and splitting it 50/50.

What do you think? Am I on my way to my own HGTV show....or should I just spend this cash on lottery tickets? lol

Thanks for the feedback!