Strategy to buy a few houses in 3 years

Strategy to buy a few houses in 3 years

Kamil SekulskiPro Member
Investor · Member since 2023 · 5 posts · 6 votes

Hello everyone,

I'm new to the Real Estate community, still learning and will appreciate any tips.
I'm planning to buy my first property for house hacking in the next few months. However, I'm aiming to own 2-3 (or more if feasible) houses within the next ~3 years to rent out. I assume I should be looking for low down payment loans. But are there any specific loans I should aim for? I'm basically looking for a strategy, which would work in my case. For example, try USDA (if possible) or FHA loan first and start by buying a primary residence, then do X, then Y.
Also, are there methods to minimize upfront costs? One that I heard is paying more for a house but letting the seller pay closing costs. Any other methods or tricks?
For context, I should probably mention that I have ~$100k in savings, 770 credit score and 95k salary.
I appreciate your help!

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    2y

    @Kamil Sekulski ok, so yes, what you are saying is accurate...but is it accurate in your market? Is it accurate for your Job? Income? Etc? I mean, we can write a book here (and some people have) on this topic but the right suggestion is to get with a realtor that is local to you and get prequalified with a lender. USDA and FHA have certain rules to them. And every state has it's own "downpayment assistance programs" (there are a couple that are nationwide) and some are income specific. And can your market support seller concessions? A realtor would know this. And the same with offering a higher price...a realtor has to run the "comps" to see if a higher price is supported by that specific property. Getting prequalified with a lender is free. So is speaking with a realtor. Let's do those things and know for sure.

  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2y
    Quote from @Kamil Sekulski:

    Hello everyone,

    I'm new to the Real Estate community, still learning and will appreciate any tips.
    I'm planning to buy my first property for house hacking in the next few months. However, I'm aiming to own 2-3 (or more if feasible) houses within the next ~3 years to rent out. I assume I should be looking for low down payment loans. But are there any specific loans I should aim for? I'm basically looking for a strategy, which would work in my case. For example, try USDA (if possible) or FHA loan first and start by buying a primary residence, then do X, then Y.
    Also, are there methods to minimize upfront costs? One that I heard is paying more for a house but letting the seller pay closing costs. Any other methods or tricks?
    For context, I should probably mention that I have ~$100k in savings, 770 credit score and 95k salary.
    I appreciate your help!


    House Hacking with GSE-subsidized loans is definitely the top way to start and do this but you max out on this pretty quickly when you are seriously about scaling. Id recommend the BRRRR Method - read the book by David Greene published here and bonus check out the article below on an article on financing questions and answers for BRRRR investors!
    https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

  • Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
    2y

    I agree with Andrew, technically yes what you're saying makes sense but is it logical for your area? I am a house hacker just north of Boston and I've got 2 duplexes since I started about 3.5 years ago but honestly, I'm not sure how feasible a third or fourth would have been in that time period. Not saying it can't be done, but don't feel the need to rush it either. Your goal right now should be focusing on the 1st.

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    Simply buy a new primary home every year. I did that for 5 years straight while picking up an occasional extra strictly rental property. 

  • Real Estate Broker · Honesdale, PA · Member since 2019 · 35 posts · 13 votes
    2y

    Go For It!  

    Most home buyer’s I work with don’t want to go the House Hacking Route.  I believe it to be one of the fastest ways to achieve FI and to set future self up for success (I currently am doing just that). 

    Once you grab your first one with a low down / owner occupied loan…you’ll get the itch to buy more and more and will soon begin to creatively find ways to fund additional deals.  3-4 additional properties / 10-15 doors will change your life.  It takes work and systems no doubt, but if you can put the time in you’ll be way better off. 

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