@Jacob Hancock-no reason to start with a new build - way too much risk and complexity-start with a house hack with a low down payment loan-if it goes well, do it againgood luck

If they want to move forward, we first advise them that if they are approved, we will need the deposit in certified check or money order only within two business days; and pro-rated rent prior to turning over keys by similar method (Once they move in, we have other payment options available).

With the FHA I’ll be putting the money as a 3% down payment and I’ll rent rooms (house hacking) or with the investor I’ll invest the money with a hard money loan going 50/50 with this guy.

I want to use this equity for a down payment on future value-add projects.  

if you just buy a standard LTR with a conventional mortgage, you'll be break even or negative in most markets, and your down payment will sit there doing nothing.i own a condo in Stamford, and i plan to start doing more in Fairfield County in 2025 when i have more time. 

This is how most hard money works now Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

They can take out enough for a down payment for the next house and a little extra to put into savings as a "What if" fund maybe 3-6 months PITI based on the new home payment.

My partner is unemployed and I have been making 100% of the payments. 

A $200,000 rehab buy is $30,000 out of pocket down payment… plus rehab costs….

We are seeing some of the best deals on SFH and small Multifamily for those with 1031, cash or clients willing to put a little more on the down payment to break even on little cash flow.