22yo First Time Buyer Multiplex California

[JC Smith]

Hello everybody, first time poster here, long time lurker.

I am 22 years old and currently in a Sales position at a local dealership pulling around 95-100k a year (2 years on the job). I have saved up around 30k in liquid currency, 6k in a 401k and around 8k in investments.

I work in the Cerritos Area of Southern California and am wondering a safe bet to throw a Owner/Occupied FHA loan at.

I would like to use this as a long term hold investment for monthly gain, and would like to keep my ROI very high.

I can not fund a conventional 20% down which is why I am going FHA.

I would LOVE to stay within 45 minutes of my work area of Cerritos Auto Square..

Any tips? I am a sponge, douse me with your knowledge

Many thanks,

Jc Smith

JCTWO Revenue LLC.

[Jenna Stonecipher]

@JC Smith I did the same thing. You can use an FHA loan for a multifamily up to 4 units, and this is a great way to start. Here in Memphis the taxes for anything over 2 units is considerably higher (almost double); so, keep that in mind when you're house hunting. Because it's your first buy, I would recommend using a realtor that someone has referred to you. Don't sign a contract with him/her the day you meet though. Take a couple of months to make sure you guys work well together. A good realtor can refer you to wonderful loan officers, appraisers, contractors, etc. My realtor is an investor herself, which worked out perfectly.

Explore the different loan types. An FHA 203k, which is complicated and burdensome, may allow you to buy a dilapidated multifamily with the 3.5% down--which wouldn't otherwise qualify for FHA financing. AsK alot of questions, and take your time. We bid on so many houses before we won one. The key is to not get emotionally involved. It's just an investment property after all.

Best of luck! Keep us posted!