Does this make sense? (FHA loan use)

[Jose Matuk]

Hi everyone. I have the opportunity to use my pre-approved FHA loan to purchase a home in Dallas, stop paying rent and possibly enjoy the appreciation that the market is having.

I've been analyzing a lot of deals and I'm really having a hard time finding anything (in MLS and with agent) that will cash flow once the first year goes by and I decide to rent out. I think this is twofold, one because the prices have been driven very high (and I'm late to the party) and the FHA payments usually are also higher (including insurance, etc.), and two because it's difficult to get the FHA loan on a property that is 70-80% and needs repairs, so nothing from my current wholesaler contacts would work.

A lot of people in this market swear that it's still going to get higher, while a few financial "experts" seem to think that "winter is coming" (a correction).

Besides the regular investment strategies (which I'm starting to implement soon), I really have the bug to put that FHA to work and get started (this would be my 2nd property, first is already a rental in Austin), I just think I'm missing something and I'd like your opinions.

Thanks BP!

Pepe Matuk