You can buy the 1st property with an FHA loan, but if you can buy a deal, something you may be able to renovate and build up equity, you can possibly refinance to a conventional loan and use the FHA loan all over again.

You may also consider houses that require some renovation, that way you can generate some instant equity.

If an agent specializes in real estate investing, they should thoroughly vet each property they present to you ensuring that it will show positive cash flow in the current and projected conditions.

. ~5% return.Spotted a development opportunity, for someone, a few days ago as I was cycling home from my brother's. 2350m2 (up to 5 sections) & 8 to 10 times as big as my equity. 5 minutes walk to edge of a big university (Canterbury).

I'm currently working to rehab and add value to a duplex in SF, and then hoping to use that equity created to fund more REI.

Does the property have equity?

You would also have instant equity if you buy correctly.

Even if they consider ~75% of rents immediately and 100% after 1 year, that would still work as the property would still appear to cash flow positive.

Julie I get it I have owned 3 sizeable HML companies in my day.. and done well over 2,500 transaction as the owner principal of the company.. and I have done them every which way.from no money.. to needing money.. to equity share etc etc.. end of the day its the character and capacity of the flipper that is paramount.tough thing right now for most is finding deals that meet the LTC ratios that make 100% funding even remotely safe. however you are new to BP I see and generally speaking this is a beginners site..

@Daniel RheeList Source is good for narrowing down a list of specific properties with criteria such as age of owner, % of equity, mortgage date, etc... but what List Source won't provide is a description of the property.