first time home buyer looking for first purchase as investment
Hello all,
I am relatively new to the bigger pockets community. I learned about these forums from reading the bigger pockets books. I recall the author's experience being that he found a good deal on his first place, did a bit of work and was able to buy his second property using the equity from his first place as a down payment for the new one. Right now, I believe I am going through some analysis paralysis and I feel kind of stuck. I am considering FHA, but I'd like to know what to be on the lookout for. I am looking to find someone in the PNW or close to the central Washington area that can give me some tips on where to find a good deal using FHA and how to pull some equity out of within a year in order to move onto my new investment. My long term goal is to start a small real estate company to where I don't have to work for wages anymore. Any help would be greatly appreciated.
Thanks
Most Popular Reply
One of the best ways to be able to pull out equity within a year of buying the property is by using forced equity(appreciation) which means getting a house that needs a little work and doing the research to find the ARV(after repair value) so if you buy a fixer upper for 100k and its worth 170k after you fix it that would mean that you would be able to refinance for around 80% of what your home is worth(170,000x80%) That would be the best way. OR the BRRR method which is buy rehab refinance rent repeat for more info on this look to read the book on rental property investing by brandon turner