This could be my first deal, help needed!
hello all,
I have been reading a lot and am very interested in creating wealth in real estate. I was trying to move my family this year but couldn't due to my financial situation. I current own a home and would like to rent it out to generate cash flow. after realizing that I couldn't move on my own I became discouraged to even think about investing in real estate. that same discouragement layrr turned into motivation, as i didnt want to settle for "getting by" i had to get in a better financial position to be a better father to my daughter (who lives in florida) A few months past and the house that my mother is renting is going up for sale. it's overpriced so I wasn't going to attempt to buy it. Well, we came across a piece of property in Williamsburg, VA that was in our family (aunt's and uncles) it needs some work but the landed assessed for 30k. and its a 3br 2bth SFH at 1300 sq/ft. It also has detached car port shed combo as well and on an acre lot. although my mom doesn't want to move she knows that house has potential.
the asking price is about 48k
comparable homes for sale or sold range from 90k-130k
I want to help my mother and stepfather and buy this home, do renovation (stepfather is a contractor) so I would run the reno money through his company. afterwhich they will be my tenants.
so I was thinking I could take a home equity loan from my current home to get a mortgage out on this home for the initial appraisal value which should be well over the asking price of 48k. i was landing at 100k as a magic number.put about 15k into the home in renovations pay the 20k home equity loan off have about 15k for me to pay off other personal debt putting me in a better financial position to move again. maybe even thinking I could do a 203k loan for my next home and in the blink of an eye have 3 properties all with good equity.
my question is, can I even do any of this? do you guys have any advice or pointers? I'm sorry if this lacks information I can and will answer any questions the best I can. thank you in advance.