Buying my first rehab home

[Jacob Beemer]

Hi everyone I haven't been on here in awhile. I am still pretty new to all this. Lets get right to it. My goal is to buy a house by the end of the year. I am thinking around October-December. I am trying to buy and flip a home and either sell it or rent it out. I am looking to buy a house from 35k to 55k. My other goal is to save 10k for the house I buy. My question is what should I use the 10k for? I know its not a lot to work with but its a start. Should I put 10k down on the house? Or should I get a loan for the house and put 10k of work into the house. I am in the Cincinnati area and there are a fair amount of homes the fix up. I am also looking into Dayton area.  Any help would be appreciated! Thanks!

[Mike Mefferd]

Hey Jacob, as a owner occupant, I would recommend financing the purchase of the house, especially if you have decent credit. If you are a first time homebuyer, you would only need to put 3.5% down, which if you bought it for $55k, would only be a little under $2k. You would be responsible for the PMI payment, but in this price range, that wouldn't be too expensive.

You may want to look at Hudhomestore.com. This is the site where HUD posts all of their repossessed homes for sale, and as an owner occupant, you get first crack on bidding on them prior to investors. You can also talk to your lender about a 203k loan, which would help you finance the purchase price and the repairs. Good luck on your search!