Where to start with $10,000?

[Terrill Clark]

Hello Everyone!,

I want to start my real estate career and I'm not too sure where to begin. I'm in Minnesota and I've been browsing homes for sale on realtor.com, zillow & trulia. From what I gathered so far in my learning, if I want to flip a home I should look for something relatively low. I search for homes in the $60,000-$150,000 range but seem to mostly find condos/townhomes and apartments.

If you were me & had $10,000 to start with, would you go the buy/hold route with rental units? Or would you open the range a bit, find a house and go for the flips?

Any advice or links to good articles would be appreciated!

[Douglas Krofcheck]

Originally posted by @Mastewal Gezahegn:

Originally posted by @Jon Weldon:

Originally posted by @Mastewal Gezahegn:

Originally posted by @Jordan Moorhead:

Mastewal Gezahegn getting an FHA loan for an out of state rental is not possible. You will have to go he conventional route and will most likely be asked to put 20-25% down.

 Interesting, has this always been the case? If so how do people go around it?

I'm not sure there is getting around it. From what I understand, FHA requires owner occupation. There doesn't seem to be a minimum length of time that you are required to occupy the property, however.

Indeed, that might put a damper in my immediate plan. Maybe I could pick a city, move there for a month and apply for an FHA as a resident. I'm sure many people have moved out of their home state and bought FHA loaned homes in the same year.

Just thinking out loud. I will indeed research this more. 

Thanks for the heads up.

No, you don't need to already live in the city. What you need to do is have the intention to stay in the house you buy for the majority of a year (you can't buy it as an out-of-state investment property) and you must move in within 60 days. The house has to be your primary residence. I looked up the policy (which doesn't want to copy+paste well). See page 140. You can leave before a year if you meet their requirements for moving (job transfer, new baby, etc...). I think they penalize you by not letting you take out another FHA loan. I don't know if they charge you fees or anything.

Someone else can find the multi-family handbook.