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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
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.
You don’t have to give up on the Bronx. There are multi unit buildings under $400,000 throughout the borough. You may qualify for financing with only 3.5% down and the rental income factored in to the loan amount. I suggest you look into financing before you try to invest in an area far far away.
Hi @Account Closed ,
What did you decide on?
We have similar conflicts. I'm also a teacher from the Bronx (born and raised) and I would love to own a multi-family in the Bronx as well. Most of the homes I see under 300K are guts or homes that need a lot of repairs. My husband and I have about 21K in savings and we want to take out an FHA loan for a 3.5% downpayment so we're avoiding properties that need a large amount of work. Our plan for now is to invest in a duplex (live in one unit) in Bergen County, NJ. After acquiring a couple of doors we would like to buy a property in the Bronx, but I fear that prices will shoot up way more than they are now.
i would stay away from SFH as your first purchase. you are 100% responsible for that mortgage should something happen like you lose your job or something. a multi family gives you breathing room. one thing to keep in mind is the taxes...sure the Bronx may have higher prices compared to NJ....but you can find properties in the bronx with 2-3k annual property tax rates.....while Jersey has some of the highest property tax rates in the country. factor that into your math and not just the purchase price.