All Forum Posts by: Edward Encinas

Correction: My monthly Cost is ~$900 & I wish to put aside ~$300 for vacancies / repairs / CapEx.

I am looking to purchase a 2 family home with an FHA loan and living in one unit. By renting out the one unit my monthly cost is ~$600, but I also wish to put aside ~600 per month for vacancies, Repairs, and CapEx. What is the best way to put aside this money safely and in an organized fashion. Is there a way to put this money aside pretax since it will be used for expenses? In general, how should I go about storing this money?

I am new to real estate investing and feel am testing the idea of using a FHA or 203k loan to purchase my first property. One problem I see is that due to the red tape involved with these loans I may miss out on a deal while waiting for approval on one of these loans.

I would appreciate any tips on using these loans effectively to purchase a property that might want to close quickly.