Updated over 4 years ago on . Most recent reply
Using FHA 3.5% Down or Conventional in this Scenario.
Currently looking to purchase a property in the San Diego State University area to house hack. Stuck inbetween using the FHA 3.5% down payment to purchase a much more expensive property (duplex etc.)as property appreciation is great in this area or doing a conventional loan w/ 20% down on a property around 430K-600K. Want this as a rental in the future. Looking for cash flow as well as appreciation in the property value. Let me know your thoughts!
Most Popular Reply
@Kyle Fairbanks,,, I have read lots of great insights and advice, this is also my input as a sixty-one year young that have acquired most of my little bit of wealth through RE investments in life, and my small business paid my dues,,,,,you are only 22 so if you start conservative and gradually build you RE wealth then there is plenty of time for you to get to DA goal. I admire your drive that you started so early on in life:):) the SDSU neighborhood has some pluses( most important for you as a hacker, renting it around the clock and pay your share and cover the cost, also building long term equity more so with these historical low rates,, also whether SDSU or any other neighborhood in San Diego( which isn’t easy to find properties in that range BTW) is safer with the forecast that they say close to 10m households unfortunately can’t keep up with their mortgages by Mid 2021:(very unfortunate) and being at 400-500k price point it’s just safer for this climate, so lots of time for you to take bigger chances and risks in a more stable environment to achieve you goals. But at the end I have learned putting 20 percent down on any RE is safer on all fronts, also make sure you have a little bit of reserve! go for it and let your good cents play a role in your factors! best of luck, and stay healthy :)