New to real estate investing

[Jayme Phillips]

Hello, I am looking to buy my first investment property, I am a contractor so renovating or finishing out a property that isn't 100% turnkey is not a problem. Ideally, I wanted to buy a property without a loan and do the BRRRR method, do to not many decently priced properties in the area that have some potential to remodel or add an addition to for adding more value to the property then cash refinancing after renting to move on to the next one. I am thinking of just getting a first-time home buys loan at the low 3.5% to 5% down and just living in it for 12 months then renting it out. My question is after the 12 months can I go and get another loan at that same % down and keep doing this for a period of ten years with the goal of having 10 properties minimum? I have heard references to doing this just not sure how it all works with a lender giving you a 2nd or 3rd loan on another property. Thanks for any advice.

[AJ Wong]

Welcome Jayme. You can typically only have one FHA loan at a time (usually must occupy as a primary for a minimum of 12 months), but there are some extenuating circumstances such as a growing family or moving to a bigger property closer to work that would enable you to apply for a second FHA loan before departing. In general 12 months as a primary and you can utilize a government sponsored loan again. If you're well qualified conventional financing is also an option with 5%+ down. FHA covers 1-4 units and you can use the rental income to help qualify. Rates and terms are better especially if you have less than optimal credit..(not saying you do!)

Check in with @Joseph Chiofalo for specifics. They lend nationwide and he's excellent resource for 1st time homebuyers. Good luck!