All Forum Posts by: Alberto Lorenzo

It is just very hard to find any good deals in Miami at this moment. I am not sure if that will change anytime soon. 

@Alberto Lorenzo I’m super impressed that you have $150k banked at age 26. Well done! My advice is to house hack (buy something you can live in and generate rental income). Study this concept if you haven’t yet. It’s the best way to begin imo especially in your season of life. There are lots of ways to apply the principle of house hacking! Buy the very nicest asset you can afford. This one decision (buying a desirable asset) reduces risk, attracts the best types of tenants and has the most appreciation potential (rents & valuation). Live there a year and do it again. Rinse and repeat a few times and you will have a nice foundation for your RE portfolio. Good luck!

Congrats on putting a ton of money away. Frankly, since you don't absolutely need to move yet, I would wait a little bit as I think the market is going to go down a little (nothing crazy, maybe 5-10% down is my guess). That being said, either strategy is fine but if your goal is to own multiple properties, I would aim to put the lowest possible down. You could also aim to get a 4plex as your first property using most of your savings. The most important thing is getting the right deal (right neighborhood, right house, right price, etc)

@Alberto Lorenzo Welcome to BP! I'm assuming that it is just you (no significant other or children?). If it is just you, I would try to buy either a duplex or single family home with an ADU. That additional income will help you offset your mortgage. You can always repeat the process after living in it for a year and try to buy again. In terms of financing, FHA is great, especially if you're a first time homebuyer but the 5% vs 20% debate is more of a personal preference. If you're looking at this from purely an investor mindset and want to put as little down, then the 5% is a no-brainer. However, remember that with a 20% down payment, although your cash on cash ROI will be lower, you won't be paying PMI as a part of your monthly payment and you'd increase your chances of cash-flowing when the property becomes a rental because your overall monthly payment will be less.