Need your opinion - What type of property for 1st rental.

[Darwin Liu]

Hey All,

I'm trying to make the most bang for my buck and I'm perplexed as to which one I should start with first.

FHA 203K (Multi family rehab loan, I believe 3% down)

Homepath rehab (I believe 10% down)

Traditional foreclosure(20% down if investor property)

I'm trying to get the best possible income stream and I probably shouldn't get pre-approved for all 3 loans correct?

My choice would be FHA 203, Homepath, then foreclosure - is that what you would decide on?

Thanks in advance!

[Emily Du Plessis]

Those are all good options, but I think it really comes down to the type of property you are going to invest in. One type of property may lend itself to a certain type of financing (multi unit- rehab- 203k) where a SFH may lend itself to conventional or Homepath. Choose the type of property (not necessarily the actual property-you can waste a lot of time searching for a specific property then find out you don't qualify, but the type of property you are looking for) then decide what type of financing will best suit.

I definitely recommend getting pre-approved before you do serious property searching though.  The worst thing is to spend a ton of time looking, then finding a property just to learn that you don't qualify for it. :)

Happy investing!