Acquiring My First Property

[Spencer Krautkramer]

Hey Everyone! I am newer to BP and this is my first post in a forum. 

I've been wanting to get into investing for a while now, however, I have never had the capital to do so. I have about $12k to start with, so I am planning on moving back to Milwaukee, WI where I'm from to invest where it's much cheaper. I'm hoping to acquire a duplex where I can use an FHA to do 3.5% down, and rent out the other unit to help pay down the mortgage. I would also like to acquire a place that needs some work (or at least cosmetic). I realize that if I take out a loan for some rehab work, I'd have an additional monthly payment, although I could eventually do a cash-out refinance once it's rehabbed.

Does anyone have any ideas on how best to fund the property as well as the rehab considering I don't have much capital to put down or use for rehab work? Or any other thoughts/suggestions on my plan in general?

[Conner Olsen]

Quote from @Spencer Krautkramer:

Hey Everyone! I am newer to BP and this is my first post in a forum. 

I've been wanting to get into investing for a while now, however, I have never had the capital to do so. I have about $12k to start with, so I am planning on moving back to Milwaukee, WI where I'm from to invest where it's much cheaper. I'm hoping to acquire a duplex where I can use an FHA to do 3.5% down, and rent out the other unit to help pay down the mortgage. I would also like to acquire a place that needs some work (or at least cosmetic). I realize that if I take out a loan for some rehab work, I'd have an additional monthly payment, although I could eventually do a cash-out refinance once it's rehabbed.

Does anyone have any ideas on how best to fund the property as well as the rehab considering I don't have much capital to put down or use for rehab work? Or any other thoughts/suggestions on my plan in general?

 You can do a 203k loan, but I recommend you save more than 12k. If one thing goes wrong you are out of luck. What if you bought a house and the roof starts leaking, that can be 15k to replace. I would live with roommates, cut expenses, and increase your income to give yourself a buffer.