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Updated over 5 years ago,
Best way to use 1st home loan for wholesaling
I am new to REI and here's my situation:
I have been renting for over 34 years (ouch!) and I want to get out of this situation. Most of those years I've paid cash for everything so until after recently taking out a business loan I have had no credit history.
I'm currently attempting to get pre-approval for a mortgage. I'd be a 1st time home buyer so I'm considering an FHA loan with down payment assistance from my state (MN). But I've heard concerns too about the effects of living in a property for a year or at least until there's some equity established before I can refinance as a BRRRR, such as being liable for the life of the loan for mortgage insurance. But I think that's only while I'm still in an FHA loan rather than a conventional loan.
So here's what I want to do: I want to start out with either some rental properties like a duplex and/or do some wholesaling. Mostly I'm looking for what is the best way to use a 1st time home loan for leverage to invest. I don't really have any $$ for a down payment at this point either. But neither do I want to continue to pay $950+/mo in rent with no equity like I'm doing.
I'm looking not only for advice but a wholesaling mentor in the Mpls/St. Paul area as well.
Feel free to ask ?s for clarification. I'm excited about getting going as I know this will make a great success story WHEN I succeed both for myself and hopefully as an inspiration to others. Thanks.