Strategy: Rehab Plus By and Hold

[Donald Spivey]

Here is a strategy that I am looking at:

Rehab and resell homes plus by and hold.

50K to invest

Purchase 30K house

Rehab 20K

Sell 100K

Put away taxes and savings off of house one and bank the profit. 

Rinse and Repeat...

Every three to five houses, I will purchase and hold a home with cash (focusing on the 2% rule).

My plan is to do this all with cash.

Is this too idealistic? 

Thanks for the help...

[Nathan Emmert]

Joe, I'm really going to have to look you up sometime and make the drive across Michigan to talk with you.  While I think there are plenty of opportunities to invest here in GR, Detroit is always looming ;)

I'm just amazed people are still so locked in to Freddie/Fannie requirements.  People, get off your butts and start making some phone calls.  Find a few neighborhood credit unions and see who does portfolio lending.  Those banks make their own rules.  Drives me nuts when people hear the first no and think that's the standard for EVERYONE.  You're likely to hear 9 no's for every yes... get used to it in this business!  The key is for YOU to do some work to get the deals you want.

It's been said so many times and yet still bears truth... if this were easy, EVERYONE would be doing it.

If you want to break the mold and achieve above average returns, it requires you to invest the time, to learn the secrets, to have the knowledge to achieve that.  It's not going to just drop in your lap because you have good intentions.