Thoughts on live in BRRRR?

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Thoughts on live in BRRRR?

Colin C leamy
CT · Member since 2017 · 30 posts · 4 votes

I've wracking my brain trying to figure out a method of entry into real estate investment even though I can't afford it.

My credit score is good and don't really have any debt but I make very little money and there is no easy out in my particular situation. 

I tried asking family members to do a joint investment deal with me, even offering to pay all of the mortgage expenses but I am not so lucky.

I can afford to pay a mortgage up to maybe $400 a month before it starts becoming too much of a burden. Yes, I am that poor but I don't wish to get into the specifics of my situation.

In any case, I feel comfortable with a mortgage up to $40k probably but lower is better and I just don't have the resources to do a complete BRRRR unless it's a steal.

I'm thinking maybe I can purchase a house using FHA and "flip" it at a pace I can afford and then reinvest to spark the snowball.

Any thoughts on this plan? Any thoughts on what sort of house I should look for and how to find it?

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  • Heidi Kenefick
    Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
    8y
    Check out a Fannie Mae/ Freddie Mac homes on homepath. I have been looking there and the properties are much cheaper than the traditional sales. If you are going to live in it, you can get it before investors when it is in the first look phase.
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  • David Fernandez
    Real Estate Agent · Vienna, VA · Member since 2016 · 289 posts · 253 votes
    8y

    Hi @Colin C leamy,

    Aside from pursuing a del using some creative finance and/or hard money, if you want to buy real estate  using traditional loan products, I will recommend you to improve your personal financial situation first. 

    Reduce expenses as much as you can and still live a comfortable life (where do you live now? Can you rent a 2BR apartment and get a roommate to share your housing expenses?) 

    Then try to increase your income (new job, side hustler, etc.). 

    Once you reduce your expenses and increase your income, you’ll be in a better (and less riskier) position to buy real estate. You’ll have savings for your down payment, you can qualify for a better mortgage, and you can use some reserves, in case you need to replace a big ticket item sooner than expected. 

    Good luck!

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  • Colin C leamy
    OP
    CT · Member since 2017 · 30 posts · 4 votes
    8y

    I'm already living as cheap as is practical in my situation. My hands are tied, there's nothing more I can do. For now I need to focus on what I can do within my current means. 

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