Thoughts on Purchasing a HUD Home

[Alejandra Tapia]

What are your thoughts on purchasing a HUD home? I have read about the FHA $100 Down mortgage program, which allows for a down payment of $100 on a HUD home. Any recommendations on this or general thoughts?

Much appreciated!

[Ray Johnson]

@Alejandra Tapia My thoughts are it depends on your real estate investment strategy. Early on in my investment career, the strategy I used most was purchasing from HUD.

Since Owner Occupants get to purchase before the properties become available to the investor pool, I would buy a property, live in 12-18 months, then do it again.

I didn't look for any low down payment programs as a part of my strategy, Since I do Buy-and-Hold investing for the long-term, I would put in offers that included enough down payment so the mortgages were always low enough so when I moved out and rented the property, the rent would cover all the expenses.