New member in Phoenix, AZ

[Matt Hixon]

Hey Everyone, 

I'm new to BP and new to real estate investing. I'm currently taking it all in, listening to hours of podcasts and webinars and reading as many books as I can. I'm recently out of school and have about $10,000 to $15,000 saved up. A friend of mine with a similar financial situation is interested in investing in a rental property with me but I'm wondering if I should house hack first given that I'm currently renting and paying someone else's mortgage (my share is roughly $500). My long term goal is to build wealth and passive income through buying and fixing rentals. Any thoughts or advice is greatly appreciated!

[Paul Santos]

Hi Matt,

House hacking in your situation would probably suit you best. You can go it alone with the money you have saved. Look at FHA financing and/or Wells Fargo has a 3% down program, take advantage of the low rates, but shop around as well and find he best loan program that meets your needs. I strongly believe its best to get in as soon as possible, and let your real estate start working for you. Rental market is strong. Low money down gets you into a minimum 3-4 bedroom 2-3 bath SFH. Rent the other bedrooms and it pays most or all of your mortgage and save, save, save, for that whole year or more, and your ready to buy again... Good luck on your endeavors!