Advice on getting my first property.

[Brent Van Beusekom]

Hello everyone,

I'm looking to buy my first property and could use some advice. I got preapproved for a loan, but I am not able to make a large downpayment, so my loan isn't particularly large. Right now I would have a 5% conventional loan with the intent of living in this property for the first year. Ideally, I would find a duplex, and live in one unit and rent out the other. If not, I would get a single family and house hack with some friends for a year. Unfortunately most properties within my price range are not in a great part of town. I know the sooner you get a property the better. And I also know location is a big factor. Would it be better for me to try to get a property within my price range sooner even if the location isn't the best or to wait until I get a higher paying job this fall, so that I can hopefully afford better options even though it would take much more time? I'm hoping this is the first of several rental properties throughout my investing career. Let me know if you have any thoughts, thanks!

[Charles Carillo]

@Brent Van Beusekom

I would wait to purchase in a better area. You want to purchase properties in C+/B- and above areas. You start going lower than that, and the appreciation won't be there, and the hassles of managing the tenant base will be overwhelming. Yes, people make money in lower C and D areas; however, I would not recommend them, especially for a first-time buyer.