Moving Forward With Cash
Ok, looking for some input from the BP community. Here's my situation ( Ill try to be as succinct as possible)...
- left my financial services business in January '15 to go full time in RE
- current income = $0/mo
- credit score 720+ (never used credit cards so lack of history was a negative to score)
- renting apartment, expenses/rent = $1200/mo.
- my personal townhome is under contract for $240K. (rented @$1900/ mo. since 6/1/11)
- should have 0 tax consequence/gains on sale (paid $180K cash in 2010)
- have $40k in additional emergency fund/checking
- have two small (and only) flips under my belt since January 2015
- all work done myself except for electrical/ major plumbing/HVAC
- will be 55 in 2016 (so I don't have 50 more years to "play around" to build nest egg
Ok, so, my idea is to buy a place for cash in the 60-$75k range and fix it up over the next 6 months then move in as my lease on my apartment expires. This allows me to live rent free. I figure with the remaining $125k or so from the sale of my townhome I can purchase a combination of small rentals for cashflow as well a a small flip or two for additional working capital. Also considering/investigating lending out some cash ( short-term) if it makes sense. Maybe also partner with someone on some flips too. (50/50?)
I guess what I'm asking is, does this sound like a reasonable plan going forward and are there any things I may be missing. As always, I appreciate any input! - Steve