Getting Started in Real Estate

[Austin Bright]

I'm a recent college grad interested in buying and renting out homes. I'm looking for advice on the best way to build the funds necessary for a decent down payment, as I don't have a ton of money saved up right now.

Also, I'd like opinions on whether it could make sense to get an FHA Loan to begin building equity to borrow against?

Thanks for the input!

[Dion McNeeley]

Heloo @Austin Bright,

Welcome to BP. There is a ton of good information here and some awesome people to network with. 

Here are some thoughts for you.

A lot of lenders will want two years of work history in one field of employment. They may not care that you change jobs but it looks best if you work in the same industry for two years. 

FHA loan is a good way to start out with property ownership. I would suggest looking into a small multi family, 2, 3 or 4 plex. Live in one side rent out the other units. This could eliminate your housing costs and possibly create some cash flow. The best part of this is then being able to increase your save rate since your not paying for your housing.

If you haven't read it yet I would also suggest reading "The richest man in Babylon" this has some great formula for saving for investing even when you do not make a lot. 

I hope this helps. Thanks.