Little Cash, Lots of Time
Hi guys.
My name is Devin, I'm 24, and from Houston, Texas. Real Estate has always been on my mind. I've always wanted to invest into property, but never knew where to start. BP has been an amazing resource in helping my get one step closer to starting. With that said, I'd like to get your help on my first move. Let me give you some numbers:
Cash on hand(in bank) 25,000.
Potential cash from a business partner(100k cash, 200k cash out refi) 300k
Options:
1.) Buy my first home, take advantage of the low rates and low required down payments, fix it up, and in a year turn it into an investment property
2.) Use mine and my investors money and buy a few properties, manage them, and just rent for now
3.) Try and do both?
I'm not limiting my options here, just listing some of the things I've been tossing around. The homes I'm looking to invest in are around 130,000, and need usually between 10-30k worth of work. I make sure that the ARV is always much higher. The cash flow seems to be pretty good, its just a matter of where to start.
P.S. I don't know how to split the profits with my investor, since i'd be doing all the work and he'd front most of the money.
P.P.S. The investor is looking at multiple options on what to do with his money, or actually how to get it into real estate. HELOC, HELOAN, ReFi, or just use the cash. My concern with the ReFi(the one I've been looking at hardest as it makes the most sense to me) is after the ReFi, we will need to use the money for a down payment, finance it, and rent it out. The cash flow then has to be used to pay down the ReFi correct?
Thanks guys for all that you do!
Devin.