How much cash do I actually need for my first deal?

Sarah gave great advice on the numbers. I want to add one thing: if you go the house hacking route, seriously consider a triplex or fourplex instead of a duplex.

Here's why the math works better: • More units = more rental income to offset your mortgage • On a 4-unit, you might cover 80–100% of your payment from 3 tenant rents • Same FHA 3.5% down, same owner-occupant rules • In Tampa's market right now, a well-priced quad can actually produce positive cash flow while you live free

The 'con' is that you're managing 3 tenants instead of 1 — but honestly, that's also the fastest way to learn landlording. After 1–2 years you'll have more operational experience than someone who read books for 5 years.

USDA loans are also worth looking at if any of your target submarkets qualify — 0% down on a single family. Some areas just outside Tampa metro qualify. Worth a 10-minute check.

I'm about 14 months ahead of where you are right now — closed my first house hack in St. Pete with $18,700 total out of pocket. Happy to share exactly how I did it.

I bought a duplex for $239,000 using FHA. Down payment was $8,365. Closing costs were $5,900 (I negotiated $2,500 in seller concessions). My tenant covers $1,250/mo and my mortgage is $1,780, so I'm net paying $530 to live in a house instead of the $1,400 I was paying in rent. That's a $870/month savings.

What I wish someone had told me: • Get your pre-approval letter BEFORE you go shopping — it tells you what you can actually afford and gives you confidence • Start talking to property managers now, even if you plan to self-manage. They'll tell you what renters want and what areas to avoid • Don't overlook duplexes that need minor cosmetic work — sellers often accept lower offers and FHA appraisers are more flexible than people think

You've got this. $22k is enough if you're buying in the right price range.

This is incredibly helpful, thank you all! @Sarah — the 60-day credit optimization tip is gold. I had no idea that was something I could do that quickly.

@Priya — your numbers are exactly the kind of real-world breakdown I was looking for. St. Pete is actually on my radar. Could I DM you to ask about your process?

Follow-up question for anyone: How do you handle the emotional side of making an offer and potentially losing it? I've heard people say you need to make 10+ offers before you get one accepted. Does that mean I should be practicing making offers now even before I'm 100% ready?

Jake, to answer your question about offers: yes, 100% start making offers before you feel ready. The first offer you make will teach you more than 6 months of YouTube.

And on the emotional side — reframe 'losing' an offer. Every declined offer is free market research. You're learning: What's the actual market clearing price? What do sellers care about besides price (closing timeline, contingencies)? Where are buyers competing vs. not?

One creative option worth knowing about since you're in Florida: seller financing and subject-to deals. In this rate environment, some sellers who have low-rate mortgages are open to 'subject-to' arrangements where you take over their existing loan. If someone has a 3.5% mortgage from 2021 on a property you want to buy, that's massive — you're avoiding the current 7%+ rate entirely.

I'm not saying go this route on your first deal — stick with conventional financing per Sarah's advice. But knowing these tools exist means you have more options as you grow.

Lender's perspective here (I do DSCR and conventional loans in FL): your profile is solid but 710 is the threshold where things get pricier. A 720 score saves you ~0.25–0.375% on rate, which on a $280k loan is about $50–70/month. Sarah's credit advice is absolutely worth acting on.

Also: don't sleep on down payment assistance programs. Florida has a few state and county programs that can layer with FHA. Hillsborough County's HOME program and the Florida Assist Second Mortgage both exist — they won't work in every situation but worth a conversation with a HUD-approved housing counselor before you lock in your approach.

Feel free to DM me if you want me to look at your numbers. I can run a quick pre-qual in 24 hours and tell you exactly what loan products you'd qualify for today.

One thing nobody mentioned: Florida is a tax lien state, which means another path exists for you if the buy-and-hold/house-hack numbers feel tight.

Florida tax lien certificates pay 18% interest (or the bid rate if competitive). You can start with as little as $500. It's a completely different strategy, but it lets you put your capital to work earning returns while you're building up to your first rental deal. Your $22k could be earning while you wait to deploy it into a property.

Not saying abandon house hacking — that's probably still your best first move. But knowing you have a 'parking lot' for your capital that earns 10–18% beats a 4.5% HYSA while you're preparing.