All Forum Posts by: Colton S.

Let's say I purchase a home through a credit union as a "first time buyer." I can live there as my primary residence for a couple months then move on and rent it out?

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Originally posted by @Dawn Brenengen:

Have you considered buying a primary residence that needs some work, living in it and fixing it up at the same time? Then, when it's ready, you can rent it out and move on to your next project. This is one way to get around the down payment issue, and it will be an issue to not have 20% as an investor. As a primary residence, you can put down as little as 3.5% or even 0% if you find a home that qualifies for USDA.

Thanks for your reply, I had considered that but do I have to live in this residence for 12 months before I can do any renting out?

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Originally posted by @Michael Jobe:

Hey Colton welcome to BiggerPockets! You've come to the right place to get answers to all of your real estate investing questions.

Have you looked into owner-occupying a multifamily property? With that route you can use FHA with 3.5% down. If you're currently renting this could be a good way to live for nearly free while also building some equity. You can obtain a hard money loan but plan to pay about 12-15% interest. Most investors use the hard money and private money loans as temporary funding until they can refinance their property. Do you have much debt? The 700 credit score is great especially for someone so young.

I have looked into an owner occupying property and still am considering it however my girlfriend doesnt quite feel comfortable with this because currently I live with my father and just pay the cable bill and she's living in school dorms an hour away. As for debt, I dont have much. Have about $4,500 in student loans that arent due till 2017. And I just financed a car for 17,500. My currently income is about 45,000 before taxes and monthly bills are about $500.

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Originally posted by @Joshua D.:

Welcome to the site! Awesome to see you are excited about this stuff. I would encourage you to spent more time searching forums on the 50% rule as it seems you might want to get that down before you go much further.

Make sure that you know ALL of the numbers: vacancy rate, cap x, managment fee, ect.

If by "private loans" you mean owner financing, then I would suggest you search topics related to that... With a good credit score just go to several banks and look into the loans that they have.

Spend as much time as possible learning all that you can. Listen to all 90 some podcasts and you will have a great grasp on the concepts talked about in realestate investing! They are free and Sooooo helpful. I have listened to them all 2 times through. They are good.

Thanks, I am downloading these as I speak !

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Hey guys, I'm fairly new to this forum but have found numerous good examples of rental suggestions and such. But let me give you my background. I just turned 20 years old, don't have a large down payment (Can get maybe 5 grand in a couple months, More when tax season hits), I have a full time job and a full time student.

My goal is to buy a first time house and use it as a rental to generate some extra income and hopefully buy more and go down that long chain of events. I was looking to put as little down as I possibly could, which I now realize is becoming impossible because it seem the lowest down is 20% for investment properties.

My first question is how do people obtain private loans, and would I be eligible for one?

My next question is if I purchase a $50,000 house in Raleigh, NC and plan on renting it out, well Zillow says my mortgage, insurance and property taxes would roughly be able $350 for a 15 year mortgage and estimated rent would be about $850 in that specific areas and generally rent is largely inflated around this area. Is this a realistic spread? I mean $500 a month profit is huge. I know you include 50% of this as matainance, but still $250 a month seems too good to be true to me.

I know my questions are a little vague, I’m still searching for some guidance along the way. I'm not worried about the approval, my credit is 700+, and however I am really interested in the lowest down possible.

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All Forum Posts by: Colton S.

Colton S. has started 21 posts and replied 185 times.

Post: Purchasing my first home and plan to use it as a rental.

Post: Purchasing my first home and plan to use it as a rental.

Post: Purchasing my first home and plan to use it as a rental.

Post: Purchasing my first home and plan to use it as a rental.

Post: Purchasing my first home and plan to use it as a rental.