3.5% Down FHA Loan - Looking to purchase 3 or 4 Family

[Brandon Madden]

Hello everyone,

I recently graduated from college and immediately started working my full-time job at a big 4 accounting firm in NYC. Real estate has always been a passion of mine and so I've started saving up for my first property. I plan to use the 3.5% down FHA loan strategy to purchase ideally a 3 or 4 family. The question I pose is: Is this a good strategy for my first investment and what are some of the pros and cons in doing so? If anyone has personal experience using this method, please reach out, I would love to talk more!

[Stacy E.]

Welcome @Brandon Madden! I bought my first house using an FHA loan. I still have the house as a rental. It was great for me at the time. (Keep in mind you will likely be subject to PMI for the life of the loan but these rules keep changing). If you can find a multi-family with your parameters it is a great way to get in the game. Many investors have done the same thing! Pros- Low cost of entry, multiple units, great rate Cons-Multiple tenants to manage, PMI, Possibility of starting too quick--- Good Luck in your journey!