---
title: 'How I Bought a House with Only $10,500'
source: 'https://youtube.com/watch?v=66knnEryjzU'
video_id: '66knnEryjzU'
date: 2026-07-28
duration_sec: 132
---

# How I Bought a House with Only $10,500

> Source: [How I Bought a House with Only $10,500](https://youtube.com/watch?v=66knnEryjzU)

## Summary

The speaker recounts how at age 19, they turned $10,500 into $100,000 in 90 days using FHA loans and the 203K renovation program. By buying a fixer-upper with a low down payment, financing repairs, and then cash-out refinancing, they generated tax-free profit.

### Key Points

- **Initial Investment** [00:02] — Invested $10,500 and turned it into $100,000 in 90 days at age 19.
- **FHA Loans Explained** [00:14] — FHA loans allow buying a house with only 3.5% down payment.
- **Renting Strategy** [00:27] — Realized you don't have to live in the house; you can rent it out to cover payments.
- **FHA 203K Program** [00:54] — The FHA 203K program lets you buy a house that needs repairs and finance the renovation costs.
- **Financing Renovation** [01:25] — Put 3.5% down on a $305,000 house and financed the entire renovation through the loan.
- **Cash-Out Refinance** [01:40] — After renovation, the house appraised for $550,000; refinanced from $340,000 to $440,000 loan, getting a $100,000 tax-free check.

### Conclusion

By leveraging FHA 203K loans and a cash-out refinance, the speaker turned a small down payment into significant tax-free profit, demonstrating a creative real estate investing strategy.

## Transcript

I invested $10,500 and I was able to turn that money into $100,000 turn that money into $100,000 in a matter of 90 days when I was 19 years old. I came across this thing called FHA loans. Basically, they let
called FHA loans. Basically, they let you buy a house for 3 and 1/2% down. you buy a house for 3 and 1/2% down. That means I could buy with $10,000 like a $300,000 house. Now, there had to be a catch, right? Well, I mean, I'm taking
on a lot of debt, right? As long as I can make the payment on the house, then deal, right? And I realized, wait a minute, I don't have to make the payment. If I can't afford the place if I'm living there, I can move and I can
put a tenant in. [music] We ended up finding this place for $305,000. No kitchen, no bathrooms, and I'm like, okay, we don't qualify for like the $400,000 or $500,000 houses in California. We
only qualify for like the crap that's at like $300,000 at the time. So, like, kitchen and no toilet and no bathroom? And so, I'm asking the lender, what how what am I supposed to do on this? How do I buy this? The FHA 203K program lets me
buy a house that I can't move into because the condition isn't ready to be moved into yet. I ended up putting 3 and 1/2% down on this $305,000 purchase and they let me finance the fix-up and renovation costs on the house. I have
fully financed this property. The entire renovation, the entire purchase, everything with 3 and 1/2% down. And we ended up getting a refinance and the appraisal appraised the property for $550,000.
I was able to get a brand new loan for $440,000 without mortgage insurance. But my old loan's only 340. I replaced my old loan's only 340. I replaced my old $340,000 loan with a new $440,000 loan.
worth of work, the refinance took longer. I refinanced a little later, but I was able to get a new loan for 440 replacing my 340 loan, which means they replacing my 340 loan, which means they wrote me a tax-free check for $100,000,
wrote me a tax-free check for $100,000, which is absolutely insane.