Looking for some direction!

[Nicholas Nocella]

I’m a 24-year-old living in South Jersey, and I'm interested in investing in properties around Philadelphia and the surrounding PA/NJ suburbs. I’ve taken care of all my debt and am pre-approved for roughly $220,000. While I know this isn't a lot in today's market, I believe there are creative ways to make it work.

I’m a former foster child who was declared independent as a teen, so I've been living with close friends that I consider family. Given my circumstances, asking any of their family members to co-sign on a mortgage loan feels like a tough ask, as I wouldn’t want to place that kind of pressure on someone. Would it be worth exploring the possibility of partnering with an investor somehow to help with funding?

I'm also pretty handy and would be open to purchasing a property that requires some minor work before tenants can move in. My idea was I could live there immediately and also do all the minor work that would not require an actual tradesmen, which would allow me to start building equity. I figured this could possibly put me in a good position for a cash-out refinance when I’m ready to move on to a second property.

If I stick within my budget, Philadelphia seems to offer the most housing availability, but I’m concerned about most houses available being in rougher neighborhoods. On the other hand, I’ve also considered staying in South Jersey. However, given my budget, I’m worried about cash flow, although I do see this first investment as the start of what I hope to be a snowball.

*Note* In NJ I will qualify for grants up to 22k to contribute at closing- In PA it would be closer to 10k (Money leaves my pocket at closing)

I’m open to all ideas and advice as I’m going to get started this year, sooner rather than later. Any thoughts or suggestions would be greatly appreciated. Go Birds!

[Alan Asriants]

Hey Nicholas! It is awesome that you are getting started early in your career. $220,000 is definitely a lower purchase price amount and really limits you on what you can buy. Unfortunately MF might be out of the question. If you are comfortable living with roommates, a SFH househack could be the move for you. If you are looking to buy in PA, its possible you can qualify for PHA KFIT program that gives you a 5% closing cost forgivable loan. The 22k in NJ is a sweeter deal and I think you will have better luck finding a SFH at 220k in a decent are in NJ than PA.

If you ever want to talk more, I'm happy to connect. Reach out anytime