Advice. House hack vs. Marketing $

[Luke Slapa]

Hello, I am looking for some advice on my situation. I am a new real estate investor and am currently closing a wholesale deal. I will be making 14k. I currently rent and want to use this money as a downpayment on an FHA loan for a triplex or 4plex to house hack. OR I can use this money to really fast track my marketing on finding deals (direct mail). Thoughts and advice would be greatly appreciated. Thanks in advance.

[Ray Lai]

@Luke Slapa

Hope the deal closes and you get the 14k. Don't count your chickens before they hatch.

I see lots of people giving you advice when the answer is really - it depends. For example, how much are the tris/quads in your area that you're looking at? Unless you're in a very cheap area, 14k is typically not enough to househack. If it is, then by all means do it. You also need to factor in other costs if you haven't owned a property before. Also FHA is really 1.5% more if you factor in the other fees so it's more like 5% even though technically it's 3.5%; there are some credit unions that give awesome 5% down conforming loans without those fees.

If you're successful at wholesaling, re-investing in scaling your business so that you have a bigger chunk for a deal would be prudent.

Again though, look at the numbers.