Affording my first property

[Javen Wilson]

So, I believe I’ve got everything figured out on how to look for deals and how mortgages work and everything. But my main issue I’m struggling to figure out is how some people managed to afford their first house when they don’t make much money.

Cause there is utilities you have to pay, house insurance, and you also have to rehab the place. I understand rehab is a separate budget but if you don’t make much money, how do you afford all the bills? This may be simpler than I’m making it out to be but thanks in advance for the responses

[Jon Kelly]

@Javen Wilson

1. Owner occupant is a good way to go, or "house hack" as you'll see it called on BP. You're either paying rent or a mortgage, so why not pay for a place while you fix it up and turn it into an investment. 

2. Use other people's money. Family, friends, hard money loans, etc. You don't need experience, but you'll have to show credibility as you pitch to others to lend you money. Do your research and pitch a well put together business plan to potential investors. 

3. Increase your net income. Either make more money or decrease your expenses. It sounds obvious, but some people don't focus on it. Why don't you "make much money"? Can you find ways to increase your income? Earn a promotion or raise. Learn a new skill. Start a side hustle. Find ways to decrease your expenses. Cancel monthly subscriptions. Trade in your car for something cheaper. Move to a cheaper apartment or move in with friends to split rent. This may take 1-2 years to see an increase, but the whole time you can be learning the business of real estate.