Insight truly appreciated...

[Sam Chima]

There have probably been many posts similar to mine, so I will try to make it unique to my situation and goals. In short, I'm 25 with excellent credit, have my degree and hold a stable job with decent income. I've decided to pursue real estate, and understand the fundamental concepts of such an investment.

To my point. Since I am a first time home buyer, would it be wise to use the FHA loan? I do have a little cash saved up, but nothing substantial (10k). I want to get my first property by end of February. I've been thinking about a condo, like a luxury one (125-165k). Or, maybe a single family home.. max 180k. I want to rent it out, but am wondering, do I have to tell my agent that I am purchasing to rent it out? Are there specifics with that FHA loan? I am not really a diy person, but I can do a few things. Would it be wise to put nothing down, and use that cash for misc expenses, months with no tenants?

I guess more specifically, for those of you who are veterans, how would you go about getting wet with real estate given my situation. Live with parents, decent income (3-4k monthly). No car payment, no credit cards. I do have a student loan, but that's it. Last, I kind of want to know where to start.. financing first?

TY. I look forward to using this site as a reference, and hopefully finding a mentor.

[Account Closed]

Chima,

1) Do not get a FHA loan. You should go with conventional financing with 5% down. It's cheaper.

2) Do not lie to the lender. It will come back and bite you in the rear. I repeat. Do not lie to your lender about it being owner occupy when you intend to rent it out. Would you want to date someone again once you found out s/he lied to you on your first date? That's not a good way to start a relationship.

3) With a FHA loan, you have to live in it for one year before you can rent it out. Same with conventional loan unless you're willing to put 20%-25% down and obtain a non-owner occupy loan. Then you're free to rent it out. With condos, there might be rental restriction.

4) How much is your student loan? What's the interest rate on the student loans)? How much is your monthly student loan payment? It might be prudent to pay-off your student loan(s) before investing.

Welcome to BP and good luck.