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Updated over 4 years ago,
NEW INVESTOR - Seeking Investment Strategy Advice
Hello, so I am a new investor in the DMV area and I'll be looking for a house starting in February or March of 2021 since my lease in the apartment that I rent will be expiring in May. I currently have about $60K saved up, and I also have some money in the crypto and stock markets that I can pull out if I really need it for my real estate investments. I have a really high credit score at the moment and I predict that it will be much higher in a month or so. Right now I'm taking real estate classes to get my license and should have my license by December or January depending on how my exam goes.
I was thinking about buying my primary townhouse home at $300-330K and I want the house to have 3 bedrooms/2 baths with a finished basement. I want to get a 30 year fixed rate loan and I'm planning on putting a 5% down payment as I want to save some of my money for either a flip or rental home for my next investment. I'll be house hacking as my dad has already committed to moving in with me, and I'll be looking to rent out the basement. After buying my first home, I should have around $40-$35K left over from my savings.
I was thinking about flipping houses to generate more cash since my goal is to buy rental homes for positive cashflow. I'll probably need to save some more money, so I'm thinking about looking for my next investment within 6 to 9 months after I buy my primary home to pay for any interest costs that I'll incur for the loans that I'll be pulling for my investments.
Questions:
- Should I put more of a down payment for my first home?
- Should I start an LLC, open a business account, and open a business credit card to build credit?
- Should I flip first or buy a rental? Will be using the BRRR strategy if I decide to buy a rental.
Would most certainly be open to any suggestions or pointers.
Thank you,
-John