Hi. Let me first say I am glad to be a member now. I have learned quite a bit from the posters here. Now, I need to be specific.
I am 26 years old. I bought my first house at the age of 23. When I bought it, I had no idea of doing it for an investment. I needed a place to live. Anyway, it is a peer and beam home. My uncle owned it before me and I bought it from him after he had fixed it up. It is about 900SF 3/1. I live in East Texas and I an confused on what I need to do next. I paid 40k for the house. I owe about 37K. Payments are $425.41 per month at 7.25%. I would guess the house would appraise for 50k or so. But then again, I am new to this. Does this sound like a better platform for a rental property? I have about 2.3 acres with this home. My sister and her husband are very successful in the real estate business and I want a slice of that pie. I really love the house, it is in a very quite neighborhood and the people are great. Not the nicest houses around but pretty well maintained.
Well, now I have to take a step. My sister assures me that the first move into real estate is the most nerve racking but she insist that I just “go for it”. I have my fears, but I need the knowledge to make my first move a smart one. Any help would be greatly appreciated!!
Here is one question that lingers in my mind. How do you buy investment property if you do not have enough income from your day job on paper for someone to lend? I have not approached lenders yet but I figure they would say “how can you afford 2 house payments”? I have Excellent credit though. I always live below my means and have saved up and done car deals as a spring board to real estate. I only have a few thousand but I guess it is better than 0. My sisters husband owns a morgage company. He has told me with my credit he could get me into a house 0 down. Problem is, he is so busy that he does’nt have the time to answer all of my follow up questions. Any insight would be appeciated.
There are millions of folks that think they can not buy a house. One of my workers even said he had bad credit and could not buy a house. He said something about a car repo over 9 years ago. He is stuck believing he can not buy a house.
With a 620 plus score you can get zero down investor loans. I would stay in the same range you are in now under $50,000. I just offered $15,000 on a house that will rent for $450 with some new paint and carpet.
I am sure you can get another loan officer to help you answer most of your questions, especially if they think you will get multiple loans thru them in the future.
Maybe your brother-in-law would help more if you had a deal under contract and were ready to get going as he may view it as a pipe dream of yours instead of eventuality. How long have you been discussing deals with him?
That is exactly what I think it is. He is a busy guy and probably sees many dreamers everyday. He should know that I am serious by now. I have been looking into it for 2 years now and continue in my education in real estate. Thanks for all the tips!!! So what I probably should do is rent my place out first, or find another place to live then rent it out? I will get in touch with some local real estate loan officers and try to learn a bit more. Thanks again. 8)