Eager to start investing, good credit

[Diara Campbell]

Hi, I am interested in starting my real estate journey. However, Just like most people I do have low funds for this type of endeavor. Yet, i know theres a way around this. I have been doing my own personal research on this matter and came across a few things; such as FHA loans, possibly leveraging my good credit score to get business credit and then use it as a down payment on a property, ofcourse hard money lenders, air bnb, and e.t.c... My question is what would be the best way to start out where i can obtain a multi family home with little to no money down and risk the chance of being in debt. Please help! Any advice would be greatly appreciated.

P.S i do work, but the funds i currently have just isnt enough.

[Robert Reynolds]

Hi @Diara Campbell, 

I would recommend starting out with a condo, and house hacking it. They have a cheaper barrier to entry, can get a solid 3 bedroom condo for $400-600k in Los Angeles. Multi-Family will start at around $750k in Los Angeles, and it's also difficult finding a property with vacant units in move in ready condition. With a condo, you will have little cap ex, and other maintenance issues, as that will often be covered by an HOA.

As far as investing with low-no money down, I would recommend the FHA loan at 3.5% down payment and then try to have the seller cover your closing costs.