All Forum Posts by: Mark B.

Can you find a place without HOA fees? That seems to be cutting into a big part of your budget.

The rest of your numbers look very similar to what I'm using when I look to find my first deal

This thread has been fun to read! If you do find out that it was in fact the son, I would move this story to the "Tenants say the dumbest things" thread!

Not sure if someone mentioned this, but how exactly are you getting 25k as a down payment.  20% would be about 20k + 20k for your rehab.  Were you accounting for something else? (small detail but i was confused)

I'm not positive, but at least with my own limited experiences, I'm finding that banks wont loan more than 75-80% LTV with non owner occupied properties. Although I hope someone chimes in to prove me wrong!

@Karla V. are you sure about this? I was working with a lender to get an FHA on a 3 unit without issues . Is it different in each state?

Good! Glad to hear!!

Depending on the market in your area, you could even find houses cheaper and need less money but don't forget about reserve money. I'm looking for my first deal right now using FHA and at first I was trying to use all of my money towards buying it but then I would have been left with nothing for emergencies. I had to cut back on what I wanted, but I think i should be better off now (whenever i end up getting a property!)

Thats what I was thinking too but honestly I have no real concept of rental periods.  I just graduated a year or two ago from college and that was a Sept-Sept cycle.  

Something else to think about, and I really hope more experienced people jump in to comment on this... but keep it mind its already September.  Does construction still move as fast during the winter (especially up in the north east)?  Not to say don't buy it for that reason, but something to consider in your numbers (holding costs).

But then I could be completely wrong! 

Definitely look into FHA. You can use seller assist to finance the closing costs. If you can save up even 5-10k, you could get yourself into a 2-4 unit building for 150k. If its the right building, the other units should cover your rent if not more. That leaves the money you were spending on rent for other stuff

IMO, i'd do what the above people have said. Try to grab a 2-4 unit with FHA and live in one of the units (Assuming its not an emergency fund like @jd martin said).

With 25k, i'd aim to put down around 10k at most (around 300k property), try to get some seller assist and all together be in for less than 15-20k.  That way you still have 5-10k as reserves (I'm just throwing numbers around and i'm not sure exactly how much it would be for closing but you get the idea :D )