DFW new investor struggles

[Anntoinette Greenidge]

Hello! 

My husband and I are first time investors currently shopping for our first property. We plan to buy a home, live in it for a year or two while updating it and then move out and continue the process on another property. 

We plan to maximize our money, by using the first time home buyer benefits available in Texas. We are each trying to buy individually, at the time of posting my husband is approved and has been through  underwriting for his mortgage amount. 

 We have been running into many issues at our price point. Because we are on the lower end of the spectrum we are going against a lot of competition, we realize that. However, many of the properties are being sold as is, the rare few that are not are typically not in the best of areas. It’s practically impossible to find anything that will cash flow, but right now we have even lowered our standards to just being able to have the property paid for by a tenant. Banking on natural appreciation and a little forced appreciation.  

I don't understand how we can get approved for anything that is sold as is, with all of the foundation issues throughout the metroplex. We will not get funded if there are not very basic minimums met. I don't understand how we can get approved for anything that is sold as is, with all of the foundation issues throughout the metroplex. We will not get funded if there are not very basic minimums met. Floors, doors, good foundation, appliances. We have a conventional mortgage not FHA, but it doesn't seem to be much better as far as restrictions are concerned.

 I am starting to lose hope that we will be able to find anything that we can successfully get funded for. Any advice would be appreciated.  We have done a lot of reading and researching. The numbers just don’t seem to work for 98% of the properties that we find. 

Facts: we have a new baby on the way and toddler so our homes have to livable in some form or fashion on top the lender requirements. We don't have a ton of cash so everything has to be financed. We will have PMI because we are using the program for our downpayment.

Will trying to get a hard money loan mess up or first time homebuyer program if we turn around and try to use our approved loan to pay off the hard money loan? Are there any other options besides a private lender, at present we do not have access to any PL’s. 

Should we give up and just hope for the bubble to pop eventually? 

Many thanks to those of you who have read this lengthy post and send some advice our way!