Low-no money down payment start out stratagies

[Tony Gallina]

Good Day!

Helping out other people while passing on your knowledge brings great satisfaction.

What are the arguments For OR Against:

1) saving $30K over two years to put down for a FHA loan on a four unit then moving into it (HouseHacking)

Or

2) Getting a single family home using an USDA loan with down payment assistance. 

Create equity over a year or so then get a HELOC against that property.

Use that HELOC to purchase a fourplex with a FHA loan and then move into the fourplex.

House Hacking the 4plex as well as renting out the single family that you originally bought with the USDA.

I knew i had to ask this question to the bigger pockets community!

[Account Closed]

@Tony Gallina great to see you active on the forums here and actively looking to invest in RE. 

I like option 1 because it helps get your snowball of cash flow going right from the gate which will enable you to continue to purchase more multifamilies down the road. The issue will be the availability of cash flowing fourplexes in your are.

The pitfall of option 2 is it is harder to make significant cash flow off SFHs, especially in your area and once you (or if you) take a HELOC you will very likely be left with a cash negative property.

PS- @Patrick Britton is very active up there in Bellingham and could be worth reaching out to.