Starting Point Conundrum

[Justin Louie]

I feel that I am not the only one in this cycle and I would like to hear your thoughts on the matter:

Goal: I would like to make my first purchase that can be both a primary residence and investment (ideally househacking a small multifamily property). I know there are options such as out of area investing or syndication, but I need a place to live and would rather not waste my money on rent.

Barriers: 
- Low down payment for my target area means seeking FHA or 203k financing
- Other low down payment products are starting to flood the market, leading me to believe that banks have money to lend and people want to buy a house, (lucky me!)
- Large student loan debt makes qualifying for financing harder due to DTI ratios.

Conundrum:

If I am seeking a property for personal residence and investment, I assume most private lenders wouldn't be as happy about less money coming in (since I'm living there), and wouldn't want to loan.

If I want to pursue more conventional financing, I would need to find a property that doesn't require much rehab, which means lower chance to build a lot of equity.

If I find a property with a chance to build in a lot of equity, the property would likely not qualify for conventional financing leaving me with the need for private money or hard money to acquire it.

Hard money would likely be way to expensive for a house-hacking venture. I would feel bad about taking private money without any experience under my belt. 

This means I would need to find either an absolute STEAL of a deal in a currently very hot market, which I cannot seem to find on the MLS or real estate shouldn't be my main concern now.

Solution: Unknown

I know I can continue to work and improve my financial baseline and EVENTUALLY, this conundrum will work itself out. However, what can I do NOW to get in the game? What do I need to change first? 

[Russell Brazil]

Originally posted by @Justin Louie:

@Russell Brazil

I appreciate your response Russell. I have been starting to feel the same way. I don't want to give up trying to find a great start, but I'm also realizing that maybe my criteria is too unrealistic. It sounds like you think it is better to give up on those goals and just get in the game?

 I firmly believe that owning real estate for long periods of time is the easiest way to build wealth. Just don't own it in dying cities or neighborhoods. Inflation is an economic force that can not be stopped. While inflation is the enemy of the saver, it is the friend of those that own real estate. So many people are out there trying to find the perfect house or the perfect investment...but it doesn't exist. So buy what you can realistically and let inflation work it's magic.