I'm currently working overseas and want to come back and go to school and flip/invest on the side. I have great credit and healthy savings but when I quit the job there goes my ability to get loans so I could only flip and sell to cash out instead of cashing out with loans and converting into rentals like I want to. I'd like to do maybe one flip into rental a month at first.
I've spoke with my father, and he agreed to partner with me without financial compensation (although they'll need my help financially before to long anyways), but we're unsure if he'd help the situation much. Here's a rundown of their financials:
-My father gets $1190 social security and $127 for partial disability from the VA each month
-My mother gets $449 social security and about $500 from part time work.
-They own their home outright which I estimate as being worth at least $200k, but it's in a trust, so I'm unsure it counts.
-They also own outright their cars and only debt is about $500 on a credit card. (recently bought new tires)
-My father has been retired since 2008, but used to be a contractor and built many homes using bank credit. His credit score should be 800+.
-They have very little savings and investments, around $10k, which are probably in the trust.
So, thats $27,192 yearly income, $210k assets, $500 liabilities and excellent credit. Their property taxes and insurance are about $3085 yearly. DTI calculators show $770 of further monthly liabilities put them to 45/45, which is something like one $115k property financed at 80% LTV.
I'm planning on incorporating and going with permanent commercial loans after renters are in with lease to cash out, so i'll be able to show cashflow for each property, but of course those won't show up on the tax returns until the new year rolls around.
Is my fathers personal guarantee enough, or should I find another partner that would cost me some of my profits?