All Forum Posts by: James Ackerson

@Steven Paul thats awesome you're already thinking about Real Estate investing! 

In my opinion - I think these are some good options. (some already mentioned already)

1) Use your $4,000 as a down payment with an FHA loan on a small multifamily (2-4 unit) and rent out the other units. Or a single family, and rent out the bedrooms to a couple friends during the school year. When you graduate, you can sell and recapture any equity you've built up, or continue to hold as a rental.

2) Research FHA 203k loans. If you have the time for it this summer, using an FHA 203k loan could help you buy and fix-up an older home. If done right, the home could be worth more than what you've put in, and you'll have some equity when you sell. During the school year, get a couple of roommates to help cover your mortgage expenses.

3) Go intern or work this summer for a property manager, developer, real estate office, apartment complex, etc. Spend some time learning a little about the business, and make a little extra $ to help you start your investing. 

4) Talk with mom/dad about partnering on a rental - and show them how you can save money by paying off a mortgage instead of paying the high cost of student housing. 

- If your having trouble finding a rental around campus, consider expanding your search to other areas around town you'd consider living. Call a couple real estate agents, and see if they can help. If your considering being an owner-occupant, you may have an advantage when buying something like a HUD home, as owner-occupants are often given the first 5-10 days to purchase before investors.

- See who is around you that is willing to help you out and be support. I think investing is great, but can be risky, especially for those just getting started - so make sure your not the only one looking at these deals. 

Best of Luck!  

Thank you for the links, and your recommendation @Perry Sigmon. I'll be sure to check out both of those!

....Sorry , I didn't get to finish. 

Does anyone have any recommendations for real estate license classes in the Knoxville area? I am hoping to get my license within the next 2-3 months, but have not heard too much about the local Pre-licensing classes, or the New Affiliate classes in our area. 

Thanks for your help!

Hey Bp'ers, 

Does 

Hey Joshua, 

I am new to investing, but my wife and I just purchased our first home (a duplex) with an FHA 203k streamline. Closed last week. We needed enough cash to cover the down payment and closing costs. Also, 2 months of taxes/insurance were also put into an escrow account. For a total loan of 117k, we spent just under 10k out of pocket.

When we were getting the pre-approval, the bank checked credit, proof of income from previous 2 years, and how much cash we had saved in checking/savings/investment accounts. All of those factored into whether or not we would qualify. 

To try and answer your question more directly, "How much money do I need available to get pre-approved?" It depends on how good your credit is, and how steady your income is, but based on my experience I would think at a minimum for your investment they will want to see that you have enough cash available for a Down Payment + Closing Costs (5K) + 2months Taxes/Insurance. 

Hope that is helpful! Best of luck!

@John Murphy 

Welcome to BP! Looking forward to seeing you around BP, and in Knoxville! 

@Payton Abernathy

Thanks for posting those tips! Never knew about  quick tip #1. 

Harry, welcome to BP! You will find a lot of great information, resources, and connections here. Please don't hesitate to reach out to anyone you think you could learn from, also - please share what you know from Dubai!

-Bo 

Those are sweet! I'd like to try fixing up or repurposing an existing shed myself before purchasing one though. I think for someone starting out, that doing one yourself could be a good way for someone interested in rehabs to get their feet wet!