Best way to buy your first rental

[Matthew Araujo]

Hi everyone! I know everyone's situation was different for purchasing their first rental. I'm currently entering my final year of college, and have been trying to get pre approved from the bank but am having some trouble. I have enough saved for the market I'm looking at, but having a part-time job won't qualify me because the bank needs to see full time employment for steady income. Should I wait until I'm working full-time, or look for other options? My mom said she'd be willing to take a HELOC on our home, so I wanted to know if anyone who has done this recommends it when starting out and some other ways you got started in real estate. Thanks!

[Jeff Schemmel]

Well, if you don't need the cash for DP then your mom taking a HELOC shouldn't make much of a difference. however, she could act as a co-signer for you to get into your first deal. This is possible, but you'd need to discuss it with your lender to see if it would help you get your first deal. a HELOC could provide additional cash for you to invest together and put some sweat-equity into your first deal OR to help you be more competitive but I would try to do your first deal without someone else's money if you can :)