Newbie First Deal: FHA Loan Scenario

[Account Closed]

Hi BP, 

I've been listening and looking at the forums for a while now and have decided that it is time to take action. Here's a bit of background for my situation. My wife and I are moving up to Boston for my Graduate school studies. I will be in school full time and she will be working full time. I would love to find a giant home in the Boston area that can be turned into a multifamily property as per the FHA loan rules. This seems like the best option for a first deal.

This would be my first deal so naturally I have some questions. 

1. Firstly, my wife and I do not have too much money saved up so even the 3.5% downpayment for the FHA loan in Boston would be a lot of money. What would be the ideal situation for partnering with investors look like? Do they get their initial investment back with interest? Do they get an ongoing portion of the cash flow? How does this work?

2. We have no connections currently in Boston so does anyone here have anyone that I could reach out to? 

3. And lastly I am, like everyone, looking for a mentor/investor. I read all the time about how I can add value to their business and that is the best way to get in contact with them. Does being able to say that if you invest with me I am willing to move and live in the FHA house for the loan requirement length? I'm just looking for creative ways to add value that tie up into my deal.

Thanks everyone!

[Melvin List]

I would reach out to some local lenders to see who is offering the 1% down conventional.  It is actually a 3% down program but some lenders are giving 2 of the 3% as a gift.  Rates are the same as the regular 3% down program.