Foreclosure vs Mortgage Loan

[Halima Martin]

Hey Guys! I just signed up for BP and I am super excited to have access to so much information. So here is the skinny: I have no real estate experience, a full-time job, planning my wedding for next June and have been renting for ever! (My current place I have been renting for over 10 years). After my wedding next year, my fiance and I were considering renting a new place (for a change in environment). Then the thought crossed my mind..."should we buy?" Then I started thought maybe I could invest in property like a multifamily property that we could live in and rent out the remaining units. This thought stayed with me for a while until I started to think that maybe buying a cheap foreclosure at the city foreclosure auction, paying for a rehabilitation and renting out this single family home would be better. So my question is to you, what do you think is more beneficial: taking out a mortgage on a multifamily property with minimal rehab needed and a 30 year payment plan OR saving money for a foreclosure and buying all at once, fixing it up and renting it out with more monthly cash flow (though I still would need a place to live). 

Thanks everyone for your input! I really look forward to learning more with the BP community.

[Jeremy Hunter]

I would suggest a 3 orb4 unit property which you can probably get with renters in it and cash flow right away even if it needed some work. The BRRR strategy is one that a lot of folks here have done and worked out for them. The big key factor is buying right no matter what type of property you look at. The source of the where you find the property does not have to much of a factor if you know what will work for your goals. Another point is that a FHA /VA loan will cover up to the 4plex with specific criteria that you have to at least live I it for a certain amount of time - generally a year is the standard. When it comes to cash vs loan they both have pros and if you leverage a property right debt can work for you.

Hope that helps!