Posted by Craig (IL) on October 01, 2005 at 01:45:11:
There’s no best method. What you are looking for is the best deal for you in your current situation. Since you’re going to live in the property you want to look at a few things. First, how long do you plan to live there? Type of property, location mean less if you plan to be there only as a starter home. In that case also consider that you may keep he home and rent when you move up. If so, consider how the property would rent in the future.
The purchase price, terms of a loan, acquisition type matter more the longer you plan to be there. Of course, you may be able to accept less than ideal terms just to get into a property and refinance at a later date for more propitious terms.
A duplex or other small multi-unit can be a good start. Many investors start this way. Since you are going to live in the property, FHA and VA loans are possible, getting you a low down payment and decent loan terms. Multiunits can also be purchased subject-2. A subject-2 acquisition where you pay the original loan for at least one year and later ?re-finance? can be a good deal to since your upfront costs will be minimal. Remember, thou, whenever you purchase with little or nothing down, it is very hard to achieve positive cash flow for the first few hears.