Stepping foot into the world of real estate
Member since 2024 · 1 post · 2 votes
I’m extremely new to this scene and am eager to learn as much as possible and eventually get my first property!
I’m very interested in house hacking and renting 2-4plexs. Here’s where I need y’all’s help!
What things should I look out for specifically when searching for multi-family properties?
Generally what types of loans would benefit a first time buyer? I have 700+ credit score and would ideally like to pay as little of a down payment as possible.
Should I worry about finding a property first and then finding a loan? Or loan first then property?
What is information I should know or be aware of when the time for purchase comes, or during the purchase phase?
Again I’m very new to this and want to absorb as much knowledge as I can!
Any other help is greatly appreciated!
talk to multiple lenders about their low down payment programs - there are more than one these days - including 203K loans for fixers
get pre-qualified first
go to REIA meetings and network with agents and other investors
don't fall in love with the first property you look at
look at as many properties as you can stand to look at
make realistic offers, but offers that work for you
think about the numbers both with you living there (you probably won't cash flow, and that's OK) and after you move out
that's a start
talk to multiple lenders about their low down payment programs - there are more than one these days - including 203K loans for fixers
get pre-qualified first
go to REIA meetings and network with agents and other investors
don't fall in love with the first property you look at
look at as many properties as you can stand to look at
make realistic offers, but offers that work for you
think about the numbers both with you living there (you probably won't cash flow, and that's OK) and after you move out
that's a start
Hey Nathan! These are all great questions, and its exciting you're getting ready to roll into becoming the best property owner you can be.
The number one thing I would say when it comes to beginner investing is don't be afraid to start small and work your way up, rather than going big and falling into greater debt. If you can find a $100-200k little home that just needs some TLC you can make great strides as a new investor and work your way up, either by renting or selling to new investors or owners. One key thing with this though is you're going to want to avoid biting off projects that you can't chew such as overly long rehab timelines or extraneous debt positions (AKA don't buy a home that the rent amount will just exceed the mortgage and expect no maintenance or surprise costs will happen.) Basically, have fun, go all-in on doing this, but just make sure to give yourself a little leeway as a new investor. You're going to learn a lot and become excellent at this.
I help new independent landlords learn what to do next after purchasing SF/MF properties they are looking to generate income from. If you're looking to really have a hands on experience with leasing out your own first couple properties while saving some cash on management fees, let's connect and I'd be glad to send you a 22 page guide I made that's straight to the point on how to lease! I also offer phone calls on a month by month basis after that. Hope to hear from you and Good luck!!
Should I worry about finding a property first and then finding a loan? Or loan first then property?
What is information I should know or be aware of when the time for purchase comes, or during the purchase phase?
Super solid advice above. To answer your specific questions. You need to get preapproved first. Note, there is a difference in prequalified and preapproved. You'd hate to spend time working through this, find a home run deal, then find out you don't qualify for the purchase. A preapproval will let you know exactly how much you qualify for and a good investor friendly lender will know how much of the rent from a multifamily they can count towards your income.
You want to partner with an investor friendly agent who can guide you here 🙋♂️. There are a ton of moving parts in a purchase transaction. BP has some good guides on the basics of the process but you'll want someone local who knows the areas and neighborhoods that will make a good rental property, after all this is an investment. Once you've identified a property and gotten an accepted offer you will want to do an inspection. Expect this to cost some money upfront, and it won't be cheap for a multifamily. $700+ for a duplex, possibly a couple thousand for a quad. There are also some add on reports you'll need to get from your home inspector to (hopefully) save some money on your insurance. Happy to connect if you have any more specific questions.