Brand new south jersey/philadelphia investor

[Steve Novosel]

Good evening Bigger Pockets community, Thanks for reading. I currently work as a realtor in the south jersey area (as a side job). However, I am looking to start investing my commissions in rental properties, or flipping properties. I am young (22) with some decent capital saved up. But not nearly enough to buy cash. Is starting off with having a mortgage a bad idea? Can anyone recommend any good rental market areas in philly and/or south jersey? Ideally I am looking for some advice to a brand new investor on some things you wish you did starting out. Thanks everyone, Steve

[Mathew Gunkel]

Welcome to BP Steve Novosel !! If you aren't already familiar with 203k FHA loans I would highly recommend looking them. This loan would allow you to put 3.5% down and wrap repair costs into the mortgage. That way you can hold onto a maximum amount of your cash for your next venture while having the lender bankroll your rehab. You can do so in up to a 4 unit property. If you buy right and build equity through an effective rehab, you could then refinance into a conventional loan extracting any equity beyond that needed to maintain 80% LTV (no more PMI). Get the unit fully occupied then find another property and repeat.