Should I buy a Condo, House, or Multi-Family|How to Get Started In Real Estate

Advertisements

When I started my first time home buying process, I questioned myself whether or not if I wanted to move into a condo, single family home, or multi family.

Here’s what it came down to. I wanted to move into something that wasn’t going to need any work that was one. With houses, they typically require a lot of handy work, meaning you may need to replace some fixtures, in a few months time you may need to replace the roof, or the siding. There’s a ton of things you may have problems with. Houses are typically more expensive than condos price wise, monthly payment wise, single family’s are generally cheaper. You don’t have to pay for a HOA fee, which are tacked on fees that cover everything from building management, building upkeep, water bills, garbage fees, and so and so forth.

Advertisements

Not having to pay that HOA fee means saving yourself an extra 200 to 500 dollars a month!

Now buying a two family home is even more expensive than buying a single family house, you have all the same expenses as buying a single family and then some. The only difference is, when owning a multi family, you have the opportunity to rent the opposite side out, saving you on your mortgage payment.

I chose to go with a condo, because A. I didn’t have to put any work into it, if I did I would end up making the home worth more so that was a place. B. the mortgage was affordable as was the HOA fee, C. the price tag compared to other condominiums 30 minutes away was generally cheaper by hundreds of thousands of dollars!

Advertisements
Advertisements

Get a free sample of my Ebook on my social media, which will go into extreme detail on how to buy real estate. Or go to the link below and get the full book

A book that helped me in my journey was “rich dad poor dad” and it may help you! Link below

Advertisements

Top 3 Ways to Buy a Home with Bad Credit |No Money Down| Essential Real Estate Tips

There’s many hidden costs when it comes to buying real estate. You have inspection fees, attorney fees, appraisal fees, and so on and so forth. All of these fees, what you call closing costs, sum up to be anywhere from 3 to 6 percent of the total loan. And that depends on if you go with a FHA loan or a conventional loan. With an FHA loan you may pay more fees than what you would if you went with a conventional loan. This is all because you may be a little riskier credit wise, FHA loans have less strict lending restrictions so people with lower credit scores go with these loans making the closing costs more expensive.

Advertisements

But fear not there are a number of ways to work your way around paying these closing costs and even down payment. You just have to use your resources well, and search through the internet until you find a blog that will guide you through the way, like this one! Being a first time home buyer opens up a lot of doors when it comes to avoiding closing costs and high percentage down payments.

Advertisements

1 Find Grants that will give you up to 10k to fund your down payment and closing costs.

Let’s go into further detail on what grants are. Grants give you money that does not need to be paid in return. Money that comes with no strings attached is by far the single and best kind ,and it can help tremendously with your down payment. There are various grant programs out there designed to cater to your areas of need. Whether it’s money for a down payment or closing costs. You can receive grants from nonprofits, local governments, and even employers.

Advertisements

Examples of Grant Programs (click the programs for more information):

Freddie Mac Home Possible 

HomePath ready buyer program

NJHMFA state-wide Down Payment Assistance Program

Photo by PhotoMIX Ltd. on Pexels.com

2 Apply for a VA or USDA loan which will allows no money down

Advertisements

The U.S. Department of Agriculture also insures 0% down payment loans. The requirement is that you must buy a house in a rural area and meet certain income restrictions. Closely consider what’s important to you in a home and a location. When it comes to a VA loan, these mortgages are usually offered through a Department of Veterans Affairs program. They’re mostly available to active and veteran service members and their families, VA loans are backed by the federal government, but are issued through private lenders. VA loans have generous terms, such as no down payment, no mortgage insurance, no prepayment penalties and limited 

Advertisements

3 Ask for Seller Concessions, and let the seller pay for your closing costs 

When going with a FHA loan you can only receive up to 3 percent of sellers concessions. So if your house’s purchase price is $100k, you’re getting $3k from the seller. This should cover the closing costs in full if it doesn’t you can roll the rest of closing costs into the end of the loan. 

Photo by Andrea Piacquadio on Pexels.com

The next step would be paying the down payment, which would equal $3500. If you want to take it even further, you can borrow the $3500 from a family member. If you go with this method you would end up paying $0 to own a piece of land and a piece of property. 

Top 3 Benefits of Becoming a Real Estate Agent | Rental Property Investing | HowtobuyNYC Podcast Ep. 2

Advertisements
Advertisements