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Updated over 5 years ago on . Most recent reply
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New Investor Information Overload / Mental Road Block
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.
- Get Pre-approved for mortgage from 3-5 lenders
- Contact real estate agent
- 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:
- 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.
- 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?
- 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.
- 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!