All Forum Posts by: Dhru Das

@Joe W. as @Perry Farella suggested FHA 203K is a good option for new investors. You don't need very high credit score and down payment is 3.5% only. You just have to live in the property for one year. You can buy a cheaper distressed property and rehab it by FHA 203k loan with rehab cost included in the loan. If you can buy a small multifamily like a duplex you can house hack it to live free or cheaper than rental...

@Account Closed may be bringing in a partner to assist with the down payment and rest seller financed would help? The partner gets his equity % based on down payment amount.

@Oluwakemi Oshimokun..welcome to BP!

I don't think it matters if your 1st investment is single or multi family. Are you going to be managing yourself or property manager? It all depends on the deal. If the deal is good enough, you will find money from private/hard money lenders etc..or if the property is already rented you can get commercial bank lending as well.I just suggest, you read blog posts on BP, listen to podcasts, read books, go to local RE meetings etc to gain knowledge and network which will help a lot. Cheers!

@Andrew Mugo...1st of all 203k process is not well known. What I found out is that some lenders will say they are good at it, but actually not. The process is highly regulated and documentation is too much..From initial loan process, to HUD consultant write ups, to contractors bids everything seem to take way longer than it should. I would write a blog post once I close on the property. Hoping next week. But again, its a good product, its just that lenders need to be more proficient and provide better guidelines to consumers.

@Mike Canfarelli like other folks are saying...nothing to worry in near future at least. Chicago is too big of a city for people to just leave...I know some high crime areas are seeing people leaving, but currently lot of stuff happening to curb crime in 4 primary high crime zips in Chicago..so hopefully things will be better. But yeah, the state needs to do better.

also as @Brie Schmidt suggested going with 5% down conventional is better idea. I didn't know anything about real estate and bought a very expensive house with conventional loan as my first purchase few years ago...lol stupid me...so I couldn't use the 5% down first time home buyer conventional program. So i am going with 3.5% FHA 203k program. You should be able to take advantage of 5% down conventional first and then FHA 3.5% next.

@Anne Leger I am working on purchasing the duplex building in Albany Park area of Chicago to house hack...the area is still affordable compared to other areas like logan sq, avondale or north center...

@Sharron Anderson welcome to BP...losing money when you first start investing is normal unless someone is super lucky or just buys turnkey properties...the way I look at it is, if you didn't lose money initially then you are not learning!

as @Brie Schmidt suggested go to local RE meet ups, you will find lot of new and experienced investors to speak/learn from. I also go to the meet up Brie hosts whenever I get time from work. I think that one is coming up on July 18, I will be there..hope to see you there.

Cheers.

@Anne Leger welcome to BP!

House hacking is an awesome idea to start out as an investor. I am also in process of acquiring a duplex in Chicago to house hack. I am going with FHA 203k loan which allows you to include rehab cost within the loan which is great. However the loan process itself is difficult to say the least but nothing is impossible. I have not closed on my deal yet, hopefully by next week. I have gained lot of knowledge regarding FHA 203k process for past few months dealing with the long process. Since you are first time home buyer you should be eligible as well for normal FHA or FHA 203k with 3.5% down. There is also conventional loan with 5% down for first time home buyers.

@Nathan Crumback..welcome to BP community!

Here you will find lot of helpful folks...however always perform your due diligence before you sign on any new deals or partnering with another investor etc like getting referrals etc..Also read BP blogs which have some interesting facts and ideas from other experienced investors. Have you considered house hacking? might be a good idea in your situation.