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Updated over 6 years ago on . Most recent reply
How to start with SFH in tri state area, looking for advice
Hi, I am a young teacher from the Bronx, and have come to realize that the Bronx, Yonkers, New Rochelle etc. have all become difficult areas for a beginner. I have decided I am willing to invest in a SFH far away from me, in different states like NJ, PA, CT.
I have around 30 grand in savings from this past year. Yesterday, a friend and I were debating how I should start. I am targeting my first SFH for around 100,000-150,000 dollars
Should I wait till I have the full amount in cash?
(I expect to have up to 150k in three years time from savings and family loans)
Or, should I use the 30k as a down payment this year?
(I would use this model to buy a SFH every year or so until I had enough equity to start investing in my area)
I am ambitious about starting. But am I being naive? Your experiences would be invaluable to me. Thanks
Most Popular Reply
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Make sure you know the area well before investing. If you can qualify for the loan and cash flow after all expenses you could start now using your savings as a down payment. You may be inexperienced but from your post it appears to be in a good way where you want to minimize risk by having as little debt as possible.
If it cash flows you could buy now and pay the loan down over the next few years or repeat the process and carry multiple mortgages. Both can work so it is all about what you are most comfortable with.