All Forum Posts by: Guenevere F.

HI Guenevere,

You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions. Many buyers/investors are using this strategy to invest in real estate.

- get into real estate with a lower rate and lesser percentage down payment.

-house hack or rent out your vacant units out to lower your monthly mortgage payment.

-repeat the process every year by acquiring one house every year with the appropriate income qualification

You can pickup a Section 8 house in Cleveland using your money as the down payment. Maybe a duplex if you're lucky, but definitely a SFR.

Hi Guenevere, 

With a budget of $23,000, it seems like multifamily might be off the table for now. It's possible to consider a single-family investment, but even then, it would be quite tight accounting for the down payment, closing costs, insurance, etc. I'd recommend holding off until you've built up more funds. It's important not to strech yourself too thin financially, especially with your first investment. I don't want to be discourage you; I just want to ensure you're in the best position to succeed when you do make that leap.

No, it will not be enough capital. If you are trying to flip, you will need around $30K to purchase. And then another $30K-$40K for renovations. If you want to buy and hold, you will need at least $35K-$40K for the down payment. You also need to have reserves in case something comes up. 

Hey @Guenevere F. I would generally agree with the other posts from @Jonathan Greene, @Drew Sygit, and @Danny Gonzalez, and @Caleb Brown, but something I think would be helpful for you would be to share the profile of a type of property, price point, and the amount of rehab you're willing to do (given your mention of S8 properties) that you are interested in acquiring. A specific property you find online would be even better. Then the community can give you some more constructive comments you can take away and set some realistic goals for yourself.

I would save up more. Is it enough? Probably but it gives you zero cushion which you'll need on a Section 8 property

@Guenevere F. $23K isn’t a huge amount of capital in today’s high-interest-rate market, but it’s definitely a starting point. If I were in your shoes, I’d consider a few key factors before diving in:

1. Risk Tolerance:

Ask yourself, “If the worst-case scenario happened and I lost this money, could I recover?” If this is your entire savings, it might be worth waiting and building up a larger safety net.

2. Savings Potential:

How quickly can you add to your savings? If you’re able to save another $20K within 6-12 months, waiting could open up more opportunities and give you more flexibility in your investment choices.

If I were young, had $23K, and believed I could rebuild that savings account, I'd seriously consider making the jump. Things will never feel perfect, and the process will always feel a little scary. When I started, I used a $64K HELOC, and today, I've grown it into a $3,000,000+ portfolio.

That being said, BE EXTREMELY PICKY with your first property. You don’t have a lot of room for error with $23K. Your first deal will set the tone for your investing journey, so:

• Make sure you’re getting good guidance.

• Ensure you have a vetted and trustworthy team.

• Run your numbers conservatively and stress-test your investment.

Lastly, I’d reconsider Section 8 (S8) for your first deal. While S8 can be appealing for its steady payments, in my experience, the returns often aren’t worth the effort, especially for newer investors. Instead, focus on value-add properties. These allow you to:

1. Force Appreciation: Actively increase the property’s value through strategic renovations.

2. Leverage Equity: Either refinance or flip the property to build more liquidity for your next deal.

If you’re interested in chatting more about strategy or need guidance, feel free to shoot me a DM. I’d be glad to help you get started on the right path.

@Guenevere F. you're going to need 20-25% down to get a mortgage.

If you target $100k, that won't leave you any funds for closing cost, maintenance or emergency reserves.

You could try targeting around $80k, but the $16k-$20k down payment would still not leave you with enough.

If you buy under $80k, you're probably buying such a low-end property that it is unlikely to meet your performance expectations.

Keep in mind that if you have 23k liquid, you really have 8k to use as a downpayment because you should always have 15k in reserves, maybe 10k if it's a condo so you have 13k.

What led you to doing out-of-state Section 8? Your property management experience will help, but getting property management on a one-off Section 8 out-of-state will be tough? It's not a great pickup for a property management company as you know.