Hi BP, Looking to hear from some seasoned vets out there about a question I had. Ive been reading the book "flipping houses for Dummies" and I think I have an idea now how I want to start in REI.. but I dont know if what I have is even possible to do.. what I wanted to do is the following :
I currently own my home and have around 50-70k built up in equity. Is it possible for me to do a cash out refi of my home then rent out my house for a lil more than what my new mortgage would be. Then taking the money from my refi to purchase a foreclosure for a good price then renovating it and then doing the same process all over again. So then I would cash out refi on the new house then rent that house out and then take the money from that refi to once again purchase another foreclosed property and so on and so on.... I dont know if this is even possible or not but I think it would be.a great way for me to get into rei.
Any and all help would be greatly appreciated. Thanks BP and have I great day!!
Hi, for a simple answer yes this is possible but it definitely sounds easier than it actually is. You can get equity loans but only 70-80% of the value depending on where you are. Also keep in mind you will max out loans at around 10. The next big thing to think about is actually living in these houses while your rehabbing them. Sometimes that's tuff enough in itself. Guessing you are a single person because I know my wife wouldn't go for it. Also are you capable of the rehab yourself or are you hiring out. Just some of the things to think about but yes it could be a good way to get started. Good luck
I actually am married bit shes all or it since we are younger . Im 27 shes.28. i am very handy I currently run my own hvac company and know alot of contractor contacts. As far as my plan I would initially renovate a bedroom a bathroom and the kitchen before I even moved.in then once that is done move in and slowly work on the rest of the house
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing