Buying first property with only 10k

[Anthony Marucci]

I’ve been learning as much as I can about investing and my plan at first was to save up money for 2-3 years but now I’m wondering if it’d be possible to invest in a rental property with only $10,000 saved up. If it is possible, what kind of property do you think I’d be able to get? (Price wise). I’m still going to be learning as much as I can but by next summer I want to start getting into the investing. Thanks!

[Anthony Wick]

What's your current situation? Single? Married? Co-habitating with somebody? Full time employment? Renting? 

There is no need to wait to house hack. 2-4 plex, 3.5% down with FHA loan. If you're renting, what is your rent? You can almost always improve your situation with a house hack of even a duplex. You said you might wait 3-4 years. In 3-4 year from now with a house hack today, you may have another 20% down to buy even more properties!

Also, I don't feel you have to have a ton saved for capex and the like right away. Get a home owners warranty for first 12 months on your house hack for any large expenses that come up, and treat the place like a true rental. i.e. If you're currently paying $1,000 a month rent, keep paying that amount, even if it's to yourself (the house hack account), and save quicker. Your tenants will pay at least 50-60% of your mortgage or more, and you continue on your current budget and savings rate for the expenses or vacancies that will happen. 

Go to a bank, apply for a FHA mortgage, and then find a great realtor to show you around and look at some multi family homes. $200,000 multi family is easy to get into with $10k cash. Keep in mind, if you close on say the 2nd of the month, your mortgage won't be due for almost 60 days. In the meantime, you'll get that first months rent (prorated from seller), and that 2nd months rent from tenant, without any rent or mortgage payment from yourself. So, sock away all that money and then some in your first two months to get that capex/maintenance/vacancy account moving.