Money for real estate
So I have a predicament, I have some cash saved up (about 20k) plus I own a house outright (valued at 120-150k). I believe this would be a great financial start for me but I have family living in the house for free. There is no cash flow for me. I want to start investing in real estate, specifically flipping houses and I think with my money saved plus the equity in the house I have a pretty good head start financially speaking. I know I should charge at least rent or something and I really want to sell the house, but this requires me to evict my family currently living there. I cannot do that. I have thought about liquidating the equity in the house but then it is a race against time because I have a loan on the house and I also know nothing about flipping houses nor real estate. I want to do this but there is a whole lot of unknowns. Does anyone have any advice or thoughts for me?
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Nicole A.
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- Rental Property Investor
- Baltimore County Maryland and Tampa Florida
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This is not a full answer, but to start, you shouldn't give assets away for free...even to family. You need to start by talking to them about charging rent. If it makes you feel better about it, make the rent *slightly--not significantly* below market rent. Let that house of yours make money for you. Treat it like a business. Is your family going to push back against paying rent or completely refuse to pay rent? If so, you have a tough choice to make. But in the end, if family refuses to pay you rent because you're family, they are using you. Do not allow anyone to guilt you otherwise.