Narrowing my focus and about ready to jump in!

[Carson Schmeck]

My fiance and I have decided it's time to get into real estate! We're new to the Philly area, but I think we've narrowed our focus to a particular region (Brewerytown/Sharswood) and a rough strategy (multifamily house hack). It feels like there is so much working against us right now (recent grad, new job, little money, high prices, high rates, ect.), but we're determined to find a place before 2023 is up. 

Thoughts so far:

It seems like the FHA loan route is really the only way we'll be able to get into this market, and based on the numbers I've been running, hopefully some seller help with rate buydowns. Since I'm coming out of grad school, and my fiance is in grad school for a few more years, cash on hand is pretty limited for a down payment and closing costs. I do have a camper van (my current home) that I am considering selling, which would help out quite a bit. Since cash is an issue, it seems like my options are either getting something fairly turn-key, or going the 203k route. I'm not opposed to a rehab at all, but I have heard the 203k deals can be tricky to execute. Still looking into that. Turn-key deals that make sense seem to be harder to find, but I'm liking the idea of a relatively low-maintenance property. We are ok with having to contribute ~$1500/mo while living there to maintain repairs/vacancy/capex as long as the property would still make sense as a pure rental if we were to move out in a few years. Rent trends in the area look promising.

Progress so far:

I've talked with a few realtors, lenders, mortgage brokers, and investors found through BP, and so far the community has been super helpful! I'm waiting on an official job offer letter right now to start figuring out the finance side of things. In the meantime, I'm feverishly analyzing multi-family properties on the MLS to get a feel for this. I've been trying to learn a bit more about real estate investing each day! Some days the outlook has been discouraging, but many have been hopeful. I look forward to finally snagging a property and getting started!

[Eric Greenberg]

Quote from @Lan N.:

Consider looking into the Philly First Home program: https://www.phila.gov/services...

Great input Lan. Just realize there are a good amount of restrictions on this, ie you can only utilize this funding on a 1-2 unit, have to own it for 15 years or have to repay the loan, and potentially restrictive income guidelines.