First time homebuyer advice in New Haven county , CT

[Reece Randall]

Good day fellow investors !

Start of by introducing myself, my name is Reece Randall currently residing in Connecticut. I’ve been really intrigued and motivated by a lot of these podcasts as many of us have ! From reading things such as Rich Dad Poor Dad, taking notes on these podcasts and reading forums , I’m ready for the next step. 

My question or advice needed/wanted is how . As a first time homebuyer I know they have things such FHA and 203k loans as well as Conventional loans.

I have about $22,000 saved up, but seeking advice . I’m interested in buying a multi family unit, either a duplex or triplex in New Haven county . Houses generally go for $200-300,000 in these areas , kinda higher than most episodes. I know I would have to focus on things like comps, the 1-3% price for rent , having exit strategies, etc.

But my question is how, How would you recommend me getting started . Is PMI something I should take with the FHA, should I go conventional? I have a few realtors who've allowed me access to MLS and a family friend whose a broker. My credit is low 800's, I don't have family with money or know of many willing to Lend.

Not asking for handouts , just advice ! I’m an open ear, eager, ambitious and ready to learn. I’ll continue my research and as listening to my podcasts . 

Any investors in CT please feel free to Shed advice or if possible I’M open to networking! I could keep going but this is start of a bright future for me , glad to have you guys apart of it !

Respectfully,

Randall

[Cameron Norfleet]

Hi @Reece Randall

My advice would be to stick with the FHA loan. If your goal is to pick up multiple multifamily properties, start with a 4 unit property. Live in it for 1 year, then refinance out of the FHA loan. Next, find a 3 unit property and purchase it using an FHA loan. Live in it for 1 year, then refinance out. Then find a 2 unit property, live in it for 1 year, then refinance out. Then get your single-family home using another FHA loan. This is a great strategy because it allows you to purchase a total of 9 rental doors and a single-family home while only coming out of pocket with 3.5% down for each property.

If you want to send your wealth-building into hyperdrive, find properties that need a lot of work and use the FHA 203K loan. This allows you to force appreciation into the properties.

Best of luck to you!