All Forum Posts by: Gilbert Joseph

@Makenzi Kurvits-Statum You can totally get an FHA loan and do this, a few things to consider though:

- Often you have to live in the property for a year or so before renting it out.

- Inspections can be rough, they will not let you buy anything that isn't semi turn key for an FHA.

- Look into 203k loans, it basically builds your rehab budget on an FHA property into the loan price, so if you buy a home that is 200k, and want 30k to rehab, you pay 3.5% of 230k. This can be very helpful for a new investor.

-Consider this. Interest rates are low, with an FHA you have to have PMI, theres no way around it. and the lowest interest rate they will give you is 4.75% that it, cut and dry. Those are expenses that a new investor doesn't want because that cuts into your cash flow majorly, in some areas. Consider putting 5% on a conventional loan. Call a few banks and talk to them, generally for a new home owner you can do this. This gets you around not only the PMI and the interest rate, it gives you a little more equity in the property, AND you can rent it when you want. Looking at the numbers, at closing on a 300k home, closing costs (estimated) were about $17,500 with a mortgage of around $1,800. Conventional at 300k was (estimated) at $19,000 for closing, and a mortgage of $1580. Just things to consider!

(I am not a lawyer or mortgage broker, just giving you information based on my experience and research)