I Have A Dream!

So the dream is forming. I need to get myself some rental property!  But how do I fund this?  Well the authors I read and shows I've watched all suggest investors.  AKA, don’t use your own money, or in my case, ask mommy and daddy.  I say NO!  This is my first investment and although I see myself mixing business and family in the future I don’t want to work the kinks out with them now.  This first one is on me. 

There are multiple ways to purchase rental property outside of how the big boys do it.  You can purchase a home for yourself, live in it the required 1 to 2 years and then rent it out.  If that is not an option, then you need to put aside 20% of the purchase price, plus closing costs, which could easily add up to 25%-30% of the purchase price.  Another option is to find one of the Fannie Mae or Freddie Mac investment properties which require 10% down.  Regardless which of the paths you choose you need good credit and some m-o-n-e-y.

This might seem overwhelming but I find making someone else money more overwhelming.  If the property I am looking at is listed at $150,000 I need to have $45,000!!  YIKES!!!  So enough writing and time do some action: By March 2013 I will have a solid timeline in place of when I will purchase my first rental property.  Why March you ask?  Because for the past year I have kept a solid budget and stuck to my savings goal, but in March I will have to find a new apartment and living situation.  That means I will have a better idea then what I can save.  In the time leading up to March I will be researching lenders, homes, agents and more ways to bring in money quicker!