All Forum Posts by: Konrad L.

Thank you all for the quick feedback, I am pleasantly surprised how helpful people are on here!

Sounds like majority is leaning towards the flip, which I am too. However, that brings me to my next dilemma, which is financing. My only choice would be conventional and even if I have enough for the downpayment, I won't have enough for the rehab. If I can make it happen, it will increase my equity quicker yielding more possibilities following.

@sydney chase I will send you a PM regarding the private lenders - thank you.

@Jean Bolger and @Val Csontos Do the VA conventional loans have lower downpayment requirements?

Val, thanks for the 'story' and your service as well. That is the reason why I'm a little weary of 'trusting' their (not everyone realtor) suggestions.

Buying, rehabbing and living in a house for a year is my 3rd option. Sounds like it worked out fairly well for you. It also puts a little less stress on the getting the job done quicker, although doing it this way may take a little longer. Although, hopefully by the first year, there would be enough equity where I can just do a conventional and do it quicker.

Hello Everyone,

I’m looking for advice, suggestions or recommendations for my first investment. I’m not sure whether to go with a 3-family rental first or a flip.

This would be my first home purchase in general. I don’t own a home right now – I rent. My idea was before I buy my first house to own and live in, to (OPTION 1) buy a rental for additional monthly income, so that I can afford a better home and then use the equity to get another rental etc. My big dream was to eventually get a bunch of rentals and live off the income and continue to invest, but I see how that could take a very long time.

My real estate agent advised me to do a flip first (OPTION 2), and if it works out, do another flip, then buy my house, and then get a rental or two etc., which makes sense because I’d be able to build up equity quicker.

I am well aware of the responsibilities that come with rentals, although I’m sure you guys would know of more than I do. Although I’m in healthcare finance now, not making a whole lot money, I do have construction background, so I’m not afraid of a flip either.

Then comes the question of how to get the mortgage for these properties... I have 12k cash but can sell one of my cars and get additional 13k for a total of 25k as a down payment. If I’m correct, with either a flip or a rental, I’ll have to get a conventional loan and 20% down, which leaves me very little money to rehab if I go with the flip, possibly, none.

There's also the option (OPTION 3) of doing FHA with less money down, while rehabbing the place with the remaining cash and living in it for a year, and then after a year, sell it gaining some equity. By then I should have enough to get another with a conventional loan, with money down and for rehab itself.

I’m really not sure which is the best way to go. Ideally I’d like to get into a house of my own within a year, while doing either the rental or a flip.Long term, I think I’d like to own a few rentals and live off that, but again, those are just dreams for now. Maybe these options are just unrealistic, period?

Any and all feedback is greatly appreciated.

Thanks,

Konrad