Buying first rental property

[Account Closed]

Hi all,

So im currently 19 and my goal is to buy my first rental property by the end of 2020. I was wondering if you think it would be best if I use the house hacking method so I only need to put 3-5% down but still live at home leaving one unit vacant for one year then renting it out. Since financial I wouldn't be able to support myself since I'm a full-time college student. Or should I wait and save more so I can put down 20% and rent out all the units. 

[Nicholas L.]

Hi @Account Closed - congrats on having a specific goal in mind.  I'm not sure I follow your question, can you provide more information? 

-If you purchase now using an FHA owner occupied loan, you would be living in the home.

-You definitely need savings for reserves no matter what - if you spend everything you have to put 20% down you might get stronger cash flow, but you will have exhausted any reserves you have for vacancy, repairs, capex, etc.