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Updated almost 7 years ago on . Most recent reply

User Stats

60
Posts
25
Votes
Michael Vu
  • Rental Property Investor
  • Cincinnati, OH
25
Votes |
60
Posts

New Investor Information Overload / Mental Road Block

Michael Vu
  • Rental Property Investor
  • Cincinnati, OH
Posted

I'm a newbie grinding to make that first purchase in the next 3-5 months, and absorbing as much information through books, podcasts, and blog posts the past few months. I feel like I have hit a point of information overload and need some help with steps / questions to push past this road block and take action!

I've come across 3 properties listed and haven't been able to do anything because I don't have my systems in place and they sold in 24 hours. I'm ready to take action, but I want to make sure these are the right steps. I'm looking to purchase a multi-family to house hack.

  1. Get Pre-approved for mortgage from 3-5 lenders
  2. Contact real estate agent
  3. Look for deals and make offers

I'm trying to map out my plan of attack and I want to make sure this is the best order or should I contact real estate agent first?

Here are some unanswered questions that I've been thinking about and holding me back:

  1. I have enough saved to put down 20% down. Should I still do a FHA or should I go conventional? I'd like to buy a second investment property 6-12 months after my first.
  2. When calculating for 1-2% rule/50% rule for house hacking, do you consider the side of the house you are living in the calculation or only the one being rented out?
  3. In this BiggerPockets blog post, https://www.biggerpockets.com/blog/2015/03/25/fha-financed-duplex-ideal-first-investment-property/, Brett Lee talked about how you need to wait 3 years before you can get a second loan after FHA loan due to showing two years of landlord experience. I'm confused about this and can't find any more information on this else where.
  4. Should I get pre-qualified first or do pre-approvals and is 3-5 too many credit checks?

I know that is a lot of questions to ask you all at once, so whatever you all can help with I'll appreciate very much! I think I know what I need to do, I just need that little assurance and kick to get me going. Thank you!

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