General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago on . Most recent reply

Brand new south jersey/philadelphia investor
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
Most Popular Reply

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.