Newbie REI looking for advice on hot market

[Derick Dume]

First, I want to introduce myself to the BP community. My name is Derick, I am an aspiring REI. I've been interested in real estate for some time now and have been doing my homework for over 8 months. I continue to learn more every day. I do not own any properties yet but would like to buy my first investment property by the new year or at the latest June 2022. I am currently looking in the Central Florida area (Orlando/Tampa) and possibly Jacksonville.

I am more focused on long term rentals, I plan on holding 15 years plus or if given the opportunity to scale to more units, that would be good too. I would love to be able to get into a MF, something like a 4- unit townhome right away but I’m not sure if that is attainable at the moment given the prices of most 4 unit town homes.

I understand the market is incredibly hot and demand is through the roof but I would like to start sooner rather than later. The first thing that comes to mind are the sky high prices.

The price of SFH and MF in the Central Florida area are high. Just off of what the MLS prices SFH seem to be steady over 300k now. That would require a 20% down payment of 60k, cash that I do not have. So my options would be private lender, hard money, conventional loan or FHA loan and house hack.

If I'm mot mistaken private money and hard money are more common for BRRRR's. Even if I did receive a private lender to provide the down payment for a rental property, I'm assuming the private lender is expecting a return on their investment sooner rather than later. I don't see how I would make 60k, let alone an 8% return at the very least, appear that quick with just one property. This doesn't seem plausible at the moment. (Please enlighten me if I am wrong)

For a conventional loan I would need the 20%, so on to the next.

So this leaves me with the house hacking, this is why I was looking at a 4-unit MF. My current situation makes it difficult to live with roommates.

Also a question regarding FHA loans, I know you are required to live in the home for a year. After that year are you able to just get another FHA loan?

So I am stuck. I’m not sure which way to go. And I am hoping that maybe I can receive some feedback from the community and see what you guys have done.

Did you invest in a hot market?

Have you ever used private or HML, what was the experience like?

Did you just save until you got the 20% needed for property?

Have you invested in markets like central Florida where SFH are going for $300k+?

Any Resources that you would recommend?

Any recommendations for obtaining MF?

Should I shift my focus to BRRRR properties?

Are new construction homes a good idea for first investment properties?

I feel like this is my first real step into becoming a REI and I want to thank you guys ahead for you feed back I hope to continue the conversations with you!

Thank you!