Looking to leverage and buy more property.

[Justin Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $191,000

Was my primary home, kept it and bought another. Currently rented out as a group home.

What made you interested in investing in this type of deal?

Real estate

How did you find this deal and how did you negotiate it?

First Home

How did you finance this deal?

FHA Mortgage

How did you add value to the deal?

Equity

What was the outcome?

Still own

Lessons learned? Challenges?

Want to buy more, leverage

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

[Nathan Gesner]

Can you provide more detail about what you need help with? I don't see a question or where you are trying to go, so providing direction is impossible.

[Chris Seveney]

@Justin Johnson

You need money to get money (leverage) - having an fha mortgage did you put 3% down.

Until you get 20%+ down it’s going to be more complex to get leverage and I would argue even if you could get leverage borrowing money with no reserves is a very bad idea

[Jonathan Greene]

You can't have an investment property rented out as a group home using an FHA loan. You have to refinance your first home and do FHA on your second one. That's the way you scale with less money each time, but you don't want to leave the last home until you have built enough equity to do a cash-out refinance.