Hey everyone, I was wondering if I could get some opinions on a scenario I'm considering. This would be my first deal and it would be to buy a property and rent for cash flow. To get started, I may have to fork over 3% - 6% of the loan just to get a mortgage. I have good credit (over 700) but apparently the lenders my broker use may not budge on a down payment; and they have over 40 different lenders. I've also been told with the current market and new mortgage policies, I can't take out on the equity right away. Since using equity to refurbish isn't an option, I was planning to ask the seller if they would be willing to fix up the property prior to me buying. This way, I can immediately rent the property out. I was also going to ask them to pay a portion of the closing cost. In return, I would offer to pay a little more than what they are asking. Otherwise I have to use my own funds for the down payment, closing costs, and refurbishing to rent out. I'm not worried about getting a tenant because the demand here is really high. I will also be leaving for Iraq in a few months so replacing my own funds wont take to long. I will be back home in 6 months with about $15 - $20k in non-taxed income to invest plus I should be able to refi my property by then. But if a severe issue comes up before I leave, it may tap me dry even with my credit. Any comments on weather the risk is worth it getting into REI? I know the first deal is the hardest, but this looks like the most plausible scenario for me to get my foot in the door. Hope to get some input and thanks for reading my long winded message.
Also, by any chance does anyone know if the income I will make on the house is non-taxable while deployed as well? I know all regular pay is. If so, it would be a great time for me to flip.