Advice for young investor on first purchase

[Robert Clark]

Hi everyone,

My name is Robert Clark, I'm 22 years old, from Chicago, finance major attending SIUE in Edwardsville, IL (STL area) and I'm ready to jump in the real estate game head first! I have many goals and this is my dream to become a successful real estate investor. I'm here to learn from people who have the same goals and interests as me. Whether your successful, or only a couple steps ahead of me, I'm sure you can still teach me something. Any advice would be highly appreciated.

I plan on buying my first property within the next year. I'm looking at multifamily properties as well as 2 bedroom 2 bathroom condos. I will have the help of my mother for this first purchase. She has a good job, great credit, and home owner so I know I will get approved by many lenders.

My question is regarding an FHA loan. Would it be recommended to put a down payment of 20% for this first purchase? and then when I graduate in 2 years, use the FHA loan to buy my second property without a co-signer. Also my first purchase is in a college town and the prices of the properties I'm looking at range from $40,0000-$100,000(Not to expensive I guess). And for this 2nd property purchase in the future I plan on having a well established career, and spending a lot more($300,000-$625,500) in a bigger city like Miami or Los Angeles. Would it be best to hold off on a FHA loan for this 2nd purchase? Should I get it with my first purchase? Can I get it for both? Any advice would help tremendously. Or maybe someone has a complete different strategy and that's something I'm also willing to hear. Please respond at your earliest convenience.

Thanks

Robert Clark

[Gregory Emmer]

Hi @Robert Clark and welcome to BP. You may want to look into FHA 203K loans, which involve rehab projects, something that is very common with investment properties. I'd speak with a loan originator who deals specifically with FHA loans, there are plenty on the forums. We're based in South Florida, so when you move into our territory, let us know how we can help!