Closed on first deal
I'll mix a starting out and success story in one post. I met the bigger pockets challenge and negotiated my way into my first buy and hold investment. Today was my closing. The property needed some plumbing and electrical fixes however I decided as a true buy and hold to get the plumbing `100% redone and converted to PEX. That set me back 2k. So much for almost turnkey :)
Here are the stats:
purchase price 45k 100% cash
rehab price 3k
Rental price 1k / month
NOI - approx 5500 / annually
cash flow 450 / month
So my goal is to keep the ball rolling and I am eying up two other similar properties. My question is what is the preferred way to get cash out of my home, cash out refi or heloc? The value of the home is approx 75k. I'd like to take out another 50k to purchase a home that needs a more extensive rehab. I believe I'll get a better long term value purchasing that way.
My game plan was to try and find loans from a semi local lender that does portfolio lending. I dont need it for my first few loans but why not start building relationships now.
Thoughts?