20 years old and wanna buy first rental need advice!

20 years old and wanna buy first rental need advice!

Member since 2020 · 4 posts · 2 votes

Hi my name is joshua I'm new to the forum and to being a viewer of bigger pockets on YouTube by watching many videos about rentals with all kinds of strategies like the brrrr method or even doing it with a fha loan but here is the issue I'm 20 years old I don't have two years of experience at a job or field without caps so I can qualify for a fha loan so recently I've started looking into the BRRRR method with that being said I'd like to get some advice on how I can do this method without using much of my own money I do have some saved but not a lot so how can I go about getting a property I've learned that there are private lenders who can help but how does that work? How can I prevent the chance of me losing my information to fake people claiming to be a private lender and how can I make this work? Any advice or past experiences would be appreciated thanks

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  • Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Joshua Schaffner

    If you are planning on living in the property, I would recommend saving money and obtaining a FHA mortgage. They are the best deal for new investors. Private lenders are most likely going to require 20%+ down. I would also recommend having a reserve for repairs and potential issues. Buying a property with no money down is fine, but buying a property and having no money, is a recipe for disaster.

  • Lender · Tampa/St. Petersburg/Sarasota FL and Knoxville/Sevierville/Maryville, TN · Member since 2018 · 361 posts · 178 votes
    5y

    Joshua, If you are concerned about fake people. Look closer to home. Friends, family members, family members of friends for private money. Then record the loan as well, and make sure you read all the contracts. You can also look for properties that the seller is willing to finance and do seller financing or subject 2 financing. 

  • Victor SoBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
    5y

    @Joshua Schaffner Hey Joshua, along with the advice given above, another option would be to have a co-signer (someone with a stable job, good credit, etc) so that you’d qualify for a low down payment (3-5%) on a property you can househack.

    Victor So Real Estate LLC517 Reviews
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