So close yet so far - advice needed, and hello

[Joe Gross]

Hi members.

My name is Joe and I'm new here. 1st post.

Welcome!

I live about an hour north of New York City. NJ/NY border area. The following is where I need advice:

I read a lot recently about first time buy-and-hold investors and they all said to start with a single family home. I have so many question I'll just jut them down. Hopefully someone here can make sense of it all.

1) While I have 0 dollars to put down I might be able to get some hard cash either on loan or as an investment. My question is which is better? Say, I can probably secure 40k in cash for a down payment. Is it worth it? And which is better? Hard loan or some kind of partnership?

2) My credit is not the best, to say the least. I won't be approved for a normal mortgage outright. I have a buddy a successful businessman with very good credit and he's willing to partner with me somehow. My question is - with such a low expected cash flow (houses around here go for 300k+ and rent is around 2k-2.5k) is it even worth to partner?

3) Speaking of credit: How does one get a mortgage for an investment property? I believe that it's easier to get approved (lower down payment + better terms) on one's residence than an investment property. How do people get around this? Do they just live there a few months/years etc? Or is there another way?

And, is a duplex a solution here? Say, I get a duplex and "live" in 1 side for some months/years and then rent it out?

Ok guys, that's all for now. I hope someone can straighten this novice out...

Joe

[Marc Manelis]

Welcome, Joe.  I'm in the same situation as question #1.

Purchasing a duplex and living in one of the units while collecting rent to pay for the mortgage to me would be the route you would want to go.  If you did that you may have to use hard money or private money (due to credit) to purchase and then refinance once you have some equity built up and have good rental history with a tenant.  Maybe you can find a seller to carry the note on a duplex.  Good luck!