Conventional 20% Down

[Mel Sims]

Hi,

I have a date set in mind to buy my first property to start my investment portfolio, but here’s the thing:

I plan on buying my first home with FHA within the next few months. I know I cannot have more than one FHA loan in my name at a time. I also know that when buying investment properties, I will need to use a Conventional loan with 20% down. However, outside of my 401k, I already know that I do not have enough money to put down 20%. I do not want to cash out my 401k for 20% down.

My question is this: Would it make sense, or is it possible to buy a house with a Conventional 3% down and turn right around to resell it...use that cash from the resale to put down the 20% on the next property that I will buy & hold...and just go from there to begin my portfolio?

Thanks!

[Simon W.]

If you buy a house with 3% down and how long will you turn it around to resell? Because if less than a year, I really doubt you will gain much appreciation.

Don't forget closing cost!