Ways to get creative with loans/purchasing when in a "saving" phase.

[Taylor Davidson]

Good Morning all, 

I purchased my first investment property in January of 2022 right before interest rates skyrocketed. My plan was to live in the residence while I fixed it up and eventually either rent or sell for profit. Since then I have made a career change from law enforcement to sales and this last year I have had to adjust to a pay cut and learning a new industry. 

Additionally, in the last year I have managed to put most of my extra money into the rehab of the first property. The good news is I have finished most of the projects and the house looks wonderful. The bad news is I am now in a saving phase and if I want to purchase a new property in 2024 I will need to get creative. My goal within the next 12 months is to purchase a duplex and begin the house hacking process of living in one unit and renting out the other for a year while repairs are made. I am currently in the Memphis, TN area, but I have plans to relocate within those 12 months and purchase in another market. 

My main questions for anyone who has been through this or has wisdom on the topic is whats your favorite creative way to purchase homes when you do not have a large sum of money on a down payment? My interest rate for this current property is too low to refinance and pull out money and it will take me a solid year with my current financial situation to save upwards of 10k or more (I am getting married next year which is a key factor in not being able to save more than I would like to towards real estate). I used a 3% conventional loan on my first home, so I believe I am still eligible for that as well as a 3.5% FHA loan. I am just curious what the best practices are and what direction I should take as I plan to slowly build my portfolio over time.

Bigger Pockets has been great thus far and I am excited to connect with people and start this journey. Thank you for any feedback even if its just to send a friend request!