Trying to buy first property

[Cameron Brulotte]

I am trying to purchase my first property, the mortgage company is letting me go up to 320k on a conventional loan.  I currently have approx 33k set aside for real estate endeavors.  Should I keep saving money in the current market or try to find a way to make something happen so that I can start seeing cash flow come my way?

Thanks BP members,

[Corby Goade]

There's a lot to consider that you haven't included. Are you going to buy and hold or flip? I'd guess, since you mentioned cash flow, that you'd like to buy and hold. There's a parable in one of the Rich Dad books where the son picks up a property that he is going to lose $75 per month on, but he is excited, banking on appreciation and tax benefits. His rich dad asks him how many deals he can afford to do like that, and he says he could do a few. He renegotiates and gets it to the point where he is cash flowing $75 per month and the rich dad asks how many deals he could do like that, and he answers; "as many as I can find."

If you are going to buy and hold, cash flow is essential, otherwise you will eventually drown.

If you're not seeing deals that cashflow, and I'd bet they're tough to find in Seattle, start finding some REI meetings to go to. Talk to some wholesalers and keep analyzing deals. Something that makes sense will come your way, you just need to be educated, confident and ready. Best of luck!