The First Step
I love this website. I have a question for any of you that have a minute to help me out. I'm a young man interested in REI for a little over a year now. I have yet to buy my first home though. I still live in an apartment with my wife. We've tried a couple of times--all of which were amazing deals, but unforseen obstacles jump out at the last minute. Now here is my question: Should I continue looking for a great property (ie. good chunk of equity) or just get into something fast that's modest but appreciates nonetheless? I have read countless books and information. I even have two or three friends that already have multiple properties and I actually advise them on their investing decisions! Could I be stuck in "analysis paralysis?" Thanks for your replies.
Eric
Eric,
Nice to meet you and welcome. DO NOT get stuck in analysis paralysis. Been there, done that, finally escaped it. That being said, don't jump until you have taken enough time to educate yourself on this board and possibly a course or two.
Ask yourself what kind of investing you want to do. Buy and hold? Flip?
If you could convince the wife of all the financial benefits and that it would only be temporary, you are in a perfect position to buy your first investment property no money down, live for free, and have positve spendable cash every month. What's wrong with that for a start?
1. See if you can qualify for an 80-20 loan (100% financing with no pmi) for an owner occupied situation.
2. Buy a four plex, preferrably below market value and move into one unit.
3. Rent the other three units out. You should now be receiving enough to pay your two mortgages plus give you cash flow.
4. After a couple years, let your wife pick out a nice home for supporting you to move into with the money you have made and saved on your first investment.
5. Rent the unit out that you moved out of to increase your cash flow and help pay for your new home.
Just one option and idea. Good luck!
Larry
Larry,
Excellent advice. I'm actually currently looking at some multi families that could do just that. I have a really good idea of what kind of investor to be. I'm a loan officer as well so I've helped plenty of other people get the good stuff with little or no money down. Now it's my turn! I guess I just need to start! Thanks again and more ideas are certainly welcome.
take time to look. find what you want for the price you want. buy eq. do your research.....and when you find it . "strike" don't wait. if you see agood deal so do others....good luck...kenmax