Investor · Fort Wayne, IN · Member since 2015 · 54 posts · 9 votes
So I've been doing my research, getting my education, and analyzing deals for about a year now. When I started on this journey I had zero money in the bank. I soon realized, after making a couple of offers, that I needed to start saving and get my bank account built up a bit. I've managed to save $5,000 and now I'm stuck. I feel like $5,000 is not enough but it took me a year to get to that mark. I'm ready mentally, been ready for awhile, to start acquiring property, but I feel like I'm in limbo due to the money factor. My credit is not good enough to get a typical mortgage as I already have one FHA loan. I don't really want to buy a "PIG" just to end up depleting my savings by rehabbing it.
@Gabriel Meerzo You may be able to purchase a new primary residence with a USDA loan and rent out your primary residence assuming you have been there for over a year. If you utilize USDA and negotiate closing costs you could get into the home for very little down (Inspection, appraisal, etc.) With that said, I think you should focus on saving more money and cutting expenses if possible to build an emergency fund in case you run into any issues with maint. or capex in the near future.
@Gabriel Meerzo I agree. The main thing is to stay patient and search for the right deal. You don't want to rush to purchase a property without a safety net then have something major happen and be unable to fix it and/or have to use credit cards with a high interest rate