All Forum Posts by: Jamia Stevens

@Jamia Stevens

I saved about a year and half and had little money for a down payment. I used “EveryDollar “ to tighten up my budget and also set the goal to save.

Then I looked at Lon options and seen what I had to do to buy.

USDA loans - you don’t need a down payment. (Can’t use for mutiunits)

FHA loan is about 3.5% down. ( can use for mutiunit)

Also you can Use the sellers assist to help cover down payments. 6% in most states I think so if you buy a place for 100k for can get a Morgage for 106k to help with down payments.

My first multi I bought a month ago I had 10k and used sellers assist for the balance which was about 10k. Bought for 250k with a 4% sellers assist.

Maybe you know the above but that’s what I did- i have to live in my current property for a year but now I can save more money since I have tenants that pay part of my Morgage. After a year I can move out and have a multi that cash flows about 2-300$ a month, plus someone else will pay for my debt.

Bottom line house hack is a good route to go.

I am now trying to think how I can buy my next house with little money. I know if I keep looking and trying it will come.

@Jamia Stevens owner finance. if you can find a seller willing to let you get into the property for that little, you could be good to go. otherwise, find a partner, private lender or i know of a hard money lender that will do 100% purchase and rehab but it's got to be a smoking deal. last time i checked you needed to be all in at 60% of ARV.

I'm a newbie just like you and is currently saving towards my down payment which I should have ready by march. But in the mean time I'm learning everything I can to be prepared for that moment. I'm currently working a job that basically just covers my Bill's, but I live as frugal as I possible can so I can save as much as I possible can and also pay down my credit card debt. What I did was put my tax returns in a CD that matures next year and i have some company stock that I'm going to liquidate as well, to have my down payment ready. Its seems like a lot but its achievable. I dont know your situation but you might consider a second job just to save up the cash. Good luck and dont give up. 

It definitely sounds like we are in the same boat. I am also trying to educate myself on everything that I need to know and build connections in order to be successful.How much did put in your CD? What's the interest rate on it?

It's much easier to make 10,000 a year more than to try and cut out 10,000 off your current living expenses. I always see people say cut spending cut spending cut spending. Increasing cash flow is much more important than saving, unless you have extravagant spending habits.

You can cut Starbucks out for a year and save $1000 or you can mow 20 lawns. Whats easier?

If you have good credit you may be able to get a loan with a 3% down payment and roll the closing costs into the loan. Financing another 4K in closing costs spread on a 30/yr loan is unnoticeable.  If you can show the lender that you can make your monthly note you have a shot.  Maybe a Duplex in an area where they cost $75K-120K so the tenant can help pay a nice chunk of the bills. Of course its better to have more money but you may have a chance and the mortgage may be cheaper than your current rent.  

Remember, never put yourself in a situation where you have to sew your socks instead of buy a new pair.

@Jamia Stevens

Look into community development loans, and community reinvestment loans. I think the programs are called something like that. Some are more “down payment assistance” programs.

I cant give you specifics since I don’t have clients using them directly. The majority of my clients are investors. But I’ve had people buy our flip listings with these loan programs.

Find a realtor working low to middle income areas and they should be able to direct you.

I have looked into those types of loans before but I am not sure if they will apply to investement properties. I know that some of those types of loans require it to be your primary residence. But I will look to see if I house hack will those loans be available to me