Correct me if I'm wrong

[Aaron Cayabyab]

Hi BP COMMUNITY, I have been learning about REI for the past year now and have been saving some cash in the meantime and now I want to jump in the game. If anyone has tips or advice on the things I should / shouldn't be doing, please let me know. I am seeking a 3 or 4 unit property using the FHA loan and will be a owner occupant. I will just list down the steps I plan to do in the next 2 months. Get prequalifed Purchase a 3 or 4 unit property Live in the unit that needs the most work and rehab it. Live there for a year Move out and rent out the unit Rehab other units if needed Re-finance within 2 years and take out some equity Repeat Correct me if I'm wrong. Any things I should add or take out. Any help is appreciate. Thanks BP COMMUNITY, Aaron

[Ned Carey]

@Aaron Cayabyab

Re-finance within 2 years and take out some equity

There is no guarantee you will have equity in two years. LTV may not be as good for a refinance as you can get on an original purchase. even if it is the same, you will have virtually no mortgage pay down in the first two years. There is certainly no guarantee of appreciation in the next two years. Even if you do get growth in equity mortgage rates could be higher in two years and there may be little benefit in refinancing.