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NoLaFiend said: "Im 24 years old & reside in New Olreans,LA. I have about $20,000 to play with, middle credit score of 710(surprisingly), and Im a renter. I have always been fascinated with REI, but never had the capital to get started. So the other day I get a bug up my butt(not literally) and fill out a pre-approval application with a mortgage company just to see where I stand at. Well low and behold the bank approves me for $135,000 90% LTV on a rental property (condo). The loan advisor said I should purchase my own property first than do an investment later. If I purchase my personal property first, Im worried about how long it will be till I am able to get an investment property. What if I decided to purchase the investment property first would I still qualify for a first time buyer on my presonal property? Now as many of you know most of nola was flooded. Which offers some great flip opportunities in good neighborhoods. But there are some uncertainties with how the city will be rebuilt. This area peaks my interest because of the great reward, but it just seems to much of a risk right now. Add to the fact some properties are inflated do to high demand low supply. What will happen when the supply comes back? The condos im looking at were closer to the Mississippi levee and were not damaged by Ms. Katrina. Just to give you an idea the condos are on the Mardi Gras parade routes. They seem to be reasonably priced compared to pre-katrina prices. So the reason I post this is to get some opinions. I have always had the mindset of flipping, but I think renting is the safer bet right now. If you were in my shoes what would you do? Inquiring mind wants to know :D"

zebbers said: "couldn't you buy for yourself with the intent of selling in a few years? Best of both worlds imho. I doubt, having purchased a home for whatever reason, you would ever qualify as a first time homeowner again."

thezster said: "I would buy the cheapest, most beat up place I could find - rehab it - move in.... and put it on the market (hopefully for a profit).... when you find a buyer - you do it again. You're young.... and moving isn't nearly as stressful for someone in your shoes as it is me (4000sq.ft worth of furniture, etc.)... That way you have the best of both worlds... you're a RE investor - and have a home also.... Good luck... but be careful.....There are a lot of great deals in New Orleans... but not necessarily any buyers once you get it ready to sell...."

RotorWash said: "Nola Fiend, First of all, I'd like to say smart move investing in Real Estate. I'm only 26 and about 1 1/2 ago purchased my first property. It was a small condo that I rented out for around $700 a month. At the time I had just signed a rental contract myself and was locked in for a year. That put me in the strange position of renting out a property while renting myself, so it's not unheard of. Since then I sold that first rental condo and then bought a larger one (this time a house) using a 1031 exchange to defer taxes on my investment. I've also purchased a home of my own. Anyway, my best advice for you as a first-time investor is to find a "buyers-agent" you can trust. In the old way of purchasing real-estate, buyers would approach the seller's agent and directly negotiate with them. The newer, preferable way is to hire your own agent, a buyer's agent, who is bound-by-law to protect your interests, and have him negotiate with the seller's agent. The beauty of it is that it doesn't cost you anything, the agent's merely split the commission 50-50. Going into a contract(especially your first purchase) without a buyers agent is akin to bringing knife to a gunfight. Assess your disposable income and pick a property that won't bankrupt you if it is left vacant for 2-3 months while looking for a renter. However don't be a pussy about risk either and end-up with something super small and old and not profitable. Just about anything will rent in 2-3 months and you can in the worst case scenario take a small monthly loss ($50-100) that you'll make up in appreciation when you sell it. Always pick something you wouldn't mind living in yourself and you won't go too far wrong. Plan to break even on the rent with mortgage and taxes and maintenance. Breaking even is good! You'll make your money in appreciation and equity when you sell. Get 5-10 average size rentals at 10% appreciation and equity a year and you'll be a millionaire in no time. My first rental was a $67,000 with a mortgage of around $650. I would also recommend hiring a property manager to get it rented for you, go with a big-name like Coldwell-banker or Century-21 for this, as they have a reputation to lose, are generally more through with background checks, and have a lot of weight to throw at a bad tenant. They know the law and how to properly evict someone! Very important! I would like to contradict some earlier advice you got however, if you're planning on purchasing both a rental and your own home soon buy the rental first. Why? Because you can get a home loan from anyone at anytime with nothing down, not true for an investment loan. You can't get an investment loan without at least 10% down, good credit, and a good debt to income ratio (also steer clear of interest-only loans, at least for your first investment). Once you've got your investment property and have it rented, go get your own home. Banks are much more willing to lend you money for that and usually with much less down. If you do it in the reverse order I can't guarantee the bank will loan you the money for an investment. Also if you're in the market for a new car, don't buy one until your real-estate purchases are complete, a loan for a big ticket item is another strike against your credit. I hope I've given you enough to chew on. :) Let me know if you have any more questions. [email]NO_SPAMdigitalwarrior03@yahoo.com[/email] -Steve"

Heather said: "If you are currently renting, maybe buying your own first home would be a place to start? Build some equity and sell later.."

NoLaFiend said: "Thanks for the replys all, much appreciated. Rotorwash thanks for the offer. ill send you an email as soon as i get some time."