Get an Apartment or Own a House? First Time Home Buyer

[Shanae Williams]

Hey biggerpockets family! 

I’m a 20 yr old living in Detroit,Mi, a beginner wholesalers whose actively marketing to find a deal. Now, my boyfriend and I were originally going to get an apartment together but, I noticed we’ll be spending a lot of money for an apartment that we do not own. So I was thinking we should buy a home instead that we’ll live in fix it up then rent it out in a yr or two! What’s the best advice you would give, I don’t know much about buying an investment property, I only been studying wholesaling. Our cash budget is 10k and I have “Good” credit score. 

[Christian Hutchinson]

Originally posted by @Shanae Williams:

Thank you @Nathan Platter but, wouldn’t that be very expensive for us with the little cash we do have? My boyfriend does basic construction. So it would be smart not to buy a house that has those problems and buy a house that needs minimal work. 

I guess my main question is with the 10k cash I have & credit score what route should I take to buy an house and be able to afford rehab. @Nicholas Kangos @Thomas S. thank you everyone for responding I really appreciate it! 

 If you have $10K I suggest you do maybe BuildingDetroit.org

You would be owner occupants, you buy a house cash.  You get some renovation money with the special financing available for owner occupants.  Try to target a Multi-Family.  You fix up one unit move in it, fix up the 2nd unit and rent it out.  Then in 3-5 years you move to your "permanent" house you will have two rental units that most likely pay for both your old home and existing.

Because your cost to buy is so low < $5000 you can buy the property, shop for renovation money, maintain an apartment (small studio or 1 bedroom) while the place gets livable.

If your partner does basic construction he will know people who can do the heavier stuff, he doesn't do personally.