First time buyer with future investment goals in need of advice:)

[Matthew Johson]

Good afternoon,

I am in my mid twenties currently living in Pompano Beach FL, working in Boca Raton looking to purchase my first home in south Florida (broward/palm beach) in the next 6 months. I plan on living in this home for 1-3 years then renting it. I have not yet contacted a realtor or lender, I have a good income with a fico score between 735-750. . My three options are: 1) Condo/Townhome 2) Single family home 3) Duplex/triplex(live in one of the units). My concerns are 1) what neighborhoods should I look to buy in my area and what neighborhoods to avoid? 2) which property type is easiest to rent and offers the best ROI. 3) should I put 20% down or do a 3-3.5% down program and pay PMI? 4) are there lower down payment programs for multifamily homes? 5) when looking for a mortgage is it best to go through a mortgage broker or individually through credit unions and other lenders? 6) How can I find a realtor that specialize in the property type I am looking for and can estimate rental potential? 7) Should I have the realtor exclude listings from the same broker? 8) If getting a condo or multifamily home, is it better to get a single bedroom or multiple bedroom? which is easier to rent? 9) What questions do i need to ask places with an HOA? 10) is a shortsale worth the wait?

I am looking for any and all advice, tips, ideas, criticism, or help I can get. Thank you Thank you Thank you

[Joseph Chiavatti]

Hi Matthew-

You have a great list of questions.  You sound like you're ready to get your feet wet in your first real estate venture!  I love speaking with new investors and I can't wait to answer some of these great questions (I will answer some and explain why at the end here).

3. This really depends on how the numbers work on the specific property and how comfortable you are with having your money "tied up" so-to-speak.  Many investors prefer to keep their cash in their pocket, while others like the security of knowing their money is safe in their real estate. 

4.  Depending on your financials, you can qualify for grants and other programs that minimize or eliminate your down payment, typically on multi families 4 units or less.

5. This is also a case by case basis.  I work with a fantastic mortgage broker that would get you a deal as good as (but mostly better) than you can get anywhere else.

7. I would be weary if both parties had the same agent, but if it's two different agents representing their respective parties under the same broker, that's not necessarily a bad thing.  The two agents help minimize the effects of what is commonly referred to as "dual agency."

8. This is an area-specific question, however, in my experience in California, 2-4 bedrooms are rented like hot cakes, while one bedroom and 5+ bedrooms are slower to rent.  Again, this is area-specific so it can be different in Florida.

9. This is a two part answer. One part is how crazy or liberal is the HOA- a great way to find out is knock on the neighbor's doors and ask- most people are not afraid to rave or spill the beans on their HOA. The other part is make sure you will be able to have renters. Some HOA's only allow a certain percentage of the residents to rent their homes, while others will only allow one rental contract per unit, and others don't allow them at all.

10. It definitely can be.  All about crunching the numbers the right way from the beginning.

The reason why I didn't answer all of your questions was because I think you need to speak to an area expert agent or broker about those other questions.  I work in California with Seven Gables Real Estate, a top notch agency in the Orange County area.  We've worked over the years to build a list of highly qualified and respected agents and brokers all over the nation and world.  If you would like for me to get you a referral in your area, PM me.  I would be happy to help you out!