Best way to buy multifamily property

[Octavius Henderson]

Hello bigger pockets community, I am a new investor in little rock looking to buy and rent out a triplex or fourplex property. Besides finding a good deal , i know that I need founding. With that being said my question for you guys is, what is the best way or smartest way to go about getting the property. I am only 19 years old right now. I am working on my credit currently to be able to finance this deal in the future. I plan to make this move in 2 to 3 years when my credit is established. But if there is a way that doesn't involve my credit I would do it now.

[Kelly Page]

In my opinion, a good option for you is as follows:

-- Find a reliable job and start automatically saving at least 20% of net your income to two separate bank accounts.  One is for long-term savings and the other is for your down payment.  Banks like to see that your monies won't be wiped out with the property purchase.

-- Get ONE credit card with low interest and use it WISELY.  Basically, charge VERY little and PAY ON TIME EVERY MONTH.  Set up auto payment at least for the minimum, potential double the minimum.  This will build your credit.  (Only do this if you know you can stick with the plan.)

-- If possible, once you've saved up about $900.  Try to obtain 3 secured lines at $300 each via a bank.  You will want a bank that updates the credit bureaus.  You'll have to give them the money you just saved.  Take the money they loan you and use it to pay back the secured loans.  Set all of this up for automatic payment.  Don't ever be late.  It sucks but you should not really pay it all back at once either, spread it a bit.  You can pay double the minimum.  Yes, you may be out of a few dollars due to interest but this is a part of the game.  This is also a credit building step.  (Only do this if you know you can stick with the plan.)

-- Continue to analyze deals that you can house hack until you have over 3.5% saved for the down payment. (Not sure what you may know at this point but house hacking is where you are actually going to occupy one of the units of the multi-family property. Because it is owner-occupied, you will qualify for FHA loans. There are plenty of forum and blog posts on house hacking on BP.)

-- When you find that deal that makes sense and you have you savings for your down payment plus a little extra. Attempt to security financing via FHA.

My advice does not take into account if the property will need major repair.  It is not the only way, just A way.  :)

Good luck!

Kelly