What would you do in my situation?

Question

Derek T. · Answer

Get your duplex with a 203k FHA loan which includes the purchase and construction in it.   Get all closing costs paid for to minimize your outbox pocket costs.  Fix it up,  live in one and rent out the other.   Obviously someone will have to sign with you so hopefully that won't be a problem. Also 203ks are for the faint at heart so I would find someone very familiar with it in your area.

Brandon Hall · Answer

Thank you guys for the input! And I want to up and leave but I have college paid for because of in state tuition and I have a very good relationship with my family so I'm not in any rush yet. I got a 500 dollar credit card I pay off every month. Would it be hard to get a construction loan right after I just got a mortgage on a property?

Mark Elliott · Answer

hi brandon. here is what you do. you need to build your credit as much as you can. first thing you want to do is take $1000 of that money you have and go to a bank near you, any bank. put it in an account. a week or so later, go back to that bank and ask to take out a secured loan for $1000. secure it with that account. they are NOT going to deny you. then, take that $1000 that you just borrowed and head to another bank and make an account with that $1000. a week or so later, go back to bank #2 and take out another secured loan for $1000, securing it with the $1000 account you just opened. repeat the process again and again until you have to pay back the original $1000. when you consistantly pay back all of those $1000 loans, you will have established your credit, using only $1000 of your own money, and you will have multiple banks that would be willing to loan you money in the future because you now have credit with them . in the mean time, look around for real estate deals with the rest of your money, they are out there and you can find them with the money that you have. good luck to you

Christopher B. · Answer

Find a rundown multi-family near the college. Have parents co-sign loan. Use your cash and/or construction loan towards the repairs. Live there while you learn more about real estate, build your credit, increase your income, and loanability.

Most important point, if you're in school it's OK but have fun man. Hang with co-eds, go to a party of two, enjoy your young years. It's smart to get an early start but it doesn't mean you can enjoy things as well.

The above is what I did while in college Tennessee, it worked out very well for me.

Brie Schmidt · Answer

@Brandon Hall

It depends on what you want to do, flipping, wholesaling, buy and hold, ect....

If you want to buy the duplex for buy and hold I would ask your parents to cosign the loan for you.  You are also going to need to build up your credit asap