I am to the point that I have so much information that I don't know where to start. I wanted to see how other people would handle the situation that I am in. I have two properties one I bought through a tax sale and another was through an auction. I know that I need to do something with them. Neither of them are in great shape. the tax appraisal on one property is approximately 21000 and the other is about 15000. There are no liens on either. If I sale these I would have some money to reinvest into another property. I do not have any personal income coming in at this time, other than my husbands and I don't want to use his if I can help it. This is something I want to do. So the properties are going to have to be my avenue to some money to reinvest. I was thinking of putting them up for sale and doing owner financing for the buyer if needed. Or rehabbing the homes and then resale the properties however my credit is not the best. Or tearing down the homes and putting in mobile homes for rental income. Or doing some type of trade. Again I am to the point that I don't know where to go. Thanks in advance for your input.
Make sure the redemption period is over on the tax sale property.
You should probably start with establishing your goals? Are you leaning towards becoming a buy and hold or fix and flip investor? Be careful not to get pulled in multiple different direction when starting out. Focus on one method of investing, educate yourself, build your network, and once you find success maybe venture to another type of investing.
How much money would you need to put into the properties to get them rent ready? What are the current rental rates for comparable properties in the area?
Best of luck!
@Tammy Stinson if I were in your shoes, I would wholesale whichever of the two would offer the least rental income as a first deciding factor. If they are both the same, then I would sell the one that would cost the most to make it market ready. Then get your income producing property to start producing income!
If that doesn't fit your goals, Try to make the most out of the relationship you have the opportunity to build with whomever you sell the property(ies) to. That can help you grow your business!
I have written down my goals but I think the problem is that I don't keep them at the forefront of my plan for the day, week, etc. In other words I don't go to the next step. I am working on that but it has been hard. I think that I am frozen if that makes any sense.
I want to ultimately be a buy and hold but I realize that I will need to make money along the way so that I can invest it into the properties that I want to keep. You are right I need to make a decision as to what area of real estate I want to do and stick with that until I become proficient and then progress to another area.
One of the properties would cost approximately 60,000 to get it to the point of resale. it is literally a shell of a house and the other I am not sure at this time but it is an older home so I am sure that it will need some work. It has been vacant for some time.
One of the homes I could probably rent out for about 700 and the other for about 450.
Curt the redemption period has past. So am not worried about that. However I still have to file for quiet title.
Robert thank you for your suggestion. I've not thought of taking one and using it to get the other one ready for rental. I will definitely look into it. It's funny how you can be so close to a situation and not see all the possible solutions.
A friend of mine, now in his late 80's, tells of a kamikaze pilot asked about 'where he was flying to?'
He responded, "I don't know but I'm getting there in a hurry."
For starters, you need to understand the difference between goals and objectives.
Objectives are targets that you aim for. Like, "I want to own rental real estate and benefit from the income, etc."
Goals are numerical, eg., "I want to own 5 rental houses that each produce $500/month profit per month".
Many of us, if not most, are or become 'opportunity detectives' and along the way we spot or smell a deal. The issue then becomes, if I get this under my control by purchasing it, what do I do to monetize it? If I don't know, should I be messing with this myself?
Ok, once you've got something in your "portfolio" maybe it would better to sell it to someone else or barter (swap/trade) for something that you really do want or can monetize.
I keep a list of equity stretchers. These are things around the house (or houses) that I don't need or really want anymore. I'd be putting one or both properties on your list and spend a bit of the proceeds on your real estate education.
That can be the best return on your investment that you'll ever see!
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