First Investment Property

[Kyle Burkhardt]

Hi Everyone - I am a recent college graduate working in finance.  Great first job, but it's boring and I'm living paycheck to paycheck.  I've been reading a lot on personal finance and everything has pointed me towards real estate investing.

I'd like to start out by purchasing a single-family residence and renting it out to tenants.  I have ~ $30K with no debt and an investing partner my age with about the same amount of cash on hand and no debt (both of us have excellent credit).

With that being said, we're wondering what you guys think the best way to structure our first purchase would be (i.e. LOC, HELOC, etc.). Even after all the research, we're still unsure of the best ways to finance our first property.

Thank you guys so much - these forums are incredibly helpful!

Kyle

[Ceasar Rosas]

@Kyle Burkhardt

Congrats on getting started. So if I'm reading correctly you both have 60k together? Have you thought of a multi family property? Maybe you and your friend can buy a multi, live in 1 unit, and rent out the other. After a year do it again or have saved up enough to go on your own and buy something with more of a down payment. If you move in you can take advantage of homeowner loans versus investor loans which require usually about 25%. If you house-hack with your partner you can use an FHA loan and may be able to get something. I'm not familiar with the LA market, but a 17,500 Down payment using FHA can get you a 500k multifamily. Just a suggestion.