10K to invest

[Mujtaba Khan]

Hi Everyone! Lets say I have about $10,000 to invest. How should I go about doing that? I live in New Jersey and I really like the idea of house hacking. It might be difficult to find this kind of opportunity around my area but I'm open to moving into different areas. Since its only $10,000, I would definitely get an FHA loan with 3.5% down but is that even realistic? Your input is greatly appreciated!

[Ro Maga]

Start looking, meet with a realtor and a mortgage broker, and don't stop saving. I'd suggest you also restructure your monthly expenses radically as to save every last penny. It all counts. You will need more than 10K to start in NJ. Even with FHA 3.5% down, you still need to show reserves, typically 3-6 months of expenses (and that alone can be an additional $10K), and you may need to cover your own closing costs just to make your offer stand out in a crowded field of offers. All of that said, start talking to people now because buying a house with financing is never an over-night kinda thing.

This is assuming you carry no consumer debt. If you do, though, pay that up! Getting rid of high interest, non-leveraged debt is potentially the best investment you can make.