Been lurking around here for a while soaking up knowledge and think I’m finally ready to start something…
I went to the Learning Annex “Wealth Expo” or sales show if you will… Didn’t learn a whole lot but got quite a few sales pitches. I picked up some good reading material there but most of what I’ve learned has been on here or other similar sites.
Anyways… I want to start getting in to wholesaling and rehabbing in the near future. Right now I’m renting an apartment but thinking about trying to buy a duplex and rent one side out. At least that way I’ll be building equity and have some cash coming in to offset my rent in order to free up more $ for investing. I’m not sure with my salary (little over 50k) I’d be able to take out a mortgage by myself and I don’t want a roommate.
Currently I have around $10k cash to start out with. I’ve been reading up on gov’t grants and loans for 1st time homebuyers, so hopefully I won’t have to use any/all of that as a down payment.
Does this sound like a good opening strategy? My current FICO is around 675, but hopefully will go up just a bit more after I pay off a couple credit cards. Anybody have any different advice on how to start with what resources I have right now?
I think starting with a duplex and renting out one side is a good way to start. I wish I would have done that. There are 3% down FHA loans and even some no-money down loans for first time buyers. Find a good mortgage company that offers you these choices. Get pre-approved so you know what price range you’re looking at.
Most states have numerous programs out there that will pay closing costs, down payment, etc. for first time homebuyers. I’m in Georgia, my wife (who is a nurse) and I bought a home like this:
We found a FSBO that had been on the market and in need of repairs. The homeowners made the mistake of letting on that they were already obligated to another home that the wife had fallen in love with. They already had a closing date, but couldn’t afford to live there even one month if they didn’t sell this property first. So, I sandbagged my offers until I got the price I wanted. Then we applied for first time homebuyers, went to credit counseling services that offered a slight drop in interest rate if we completed the course, then we got the PEN program which is $7,500 dollars towards the price of a home since my wife is a Nurse, we also rolled our down payment and closing costs back in. So we left with money, due to the equity in the home.
I’m in Dallas, TX. There are tons of opportunities here, just depends on how much you wanna pay. The bad thing about finding a duplex here is finding one semi close to my current office that won’t be in a crappy neighborhood.
I found some good info on www.homebuyerfunds.com about finding grants for 1st time home buyers among other things. To where they’ll pay for your down payment and closing costs, some places up to 10k or 5%, whichever is less. Not too shabby!
Hi folks -
I’m a newbie here ( my first post) but have been dabbling in REI for about 20 years.
Cavell - Your approach sounds good to me. In fact, I started out along the same lines. I was looking at duplexes too but instead bought two homes togeather on land contract as my first investment. Lived in one and rented the other . I lived in the smaller one and rented the larger one which covered my l/c payment. Eventually I moved on and rented both for positive cash flow.
You sound like you got your head on straight and am heading down a successfull path. I’m here in Michigan, land of the depressed economy, and I made it work here so you can do it just about anywhere. Just stay positive and look for oppurtunities to appear when you least expect them to.
Good luck - Mike.
I am from Indiana, and here there is a program that the state will pay your down payment if you qualify, so that is something that you may want to check out. Good Luck, I am in the same boat as you right now.
With most of the grants that I’ve found I make too much money to qualify for. Either that or the grants require you to live in that house for X years. And if you don’t you have to repay it in full.
So far haven’t been able to find any decent duplexes in my price range in the location I want so think I’m just gonna go with a big single family home. Then maybe get a roommate if I want more $ to save for investing.
Thanks Mike! I’m hoping to close on my 1st house by my 25th b-day at the end of the month.