Buying Your First Rental

[Maciej Michalak]

Hello everyone,

I am currently looking to create a strategy on acquiring my first rental property. Through Brandon's podcast the BURR strategy really caught my eye and I am curious about some financing options. I would be a first time home buyer qualifying for an FHA loan. I understand the loan insurance would increase my payment and bring my cash flow down. I would be looking to purchase a 3 flat where I could live in one of the units until I purchase another one. For you experienced investors out there how would you recommend on tackling this issue. Should I try and get a private money loan for the first year and then refinance or take advantage of the low down payment option on an FHA?

[Paul Sorgi]

If you are going to live there then go with the FHA loan. I can't speak to the laws in Illinois but in Mass private lenders will only lend on non-owner occupied properties.