Buying two houses next year. Am i on the right track?

[Nick Bitz]

So here is a watered down summary of my plan, let me know if this is a viable idea. I am open to any suggestions from experienced investors.

By March of next year I will have 40k. I plan on using 20K to secure my first home. Something in the 100 to 120k range that needs some TLC (I live in DFW btw). Putting the minimum down and using the rest to renovate. This will be my live in project for a year or so until I finish and save up the money to move and turn it into my first rental.

As for the other 20k. I will be partnering with a friend who has 20k ready to match me as soon as im ready to go. With a combined 40k we plan on getting another rental in the area and splitting it 50/50.

What do you think? Am I on my way to my own HGTV show....or should I just spend this cash on lottery tickets? lol

Thanks for the feedback!   

[Hattie Dizmond]

ps...I would stay away from the big banks directly, especially for your first loan. Use an online matching service like Lending Tree or Quicken Loans. You're going to get the best and broadest view going that direction. If you decide to do FHA, there is going to be little difference in the loan from one lender to the next. However, get all the quotes from the online lenders, then take those rates & terms to small, local banks &/or credit unions. You're shopping, just like when you're buying a car. And, just like buying a car, it's all about price & terms, and the lenders - like the car dealers - need you to buy their product.