Maple Valley, WA · Member since 2017 · 45 posts · 12 votes
In November I expect to have a small amount of cash to invest. Due to this limited amount I'm thinking about the following options:
- Partner w/ another investor (I provide the cash for rehab?)
- Use it to be a private lender in order to build reserve up over time (I assume this would need to be with investors outside of WA state where there's more affordable housing)
What is the average $ home in your area? Depending on where you live, you could use that money as a downpayment for an FHA 3.5% down load, or USDA 0% down loan. You can also roll in your closing costs as a concession if the purchase price is over 100k~. If you go the FHA route, you can bundle it with a 203k construction loan, which you can use to help you rehab a property. Then you can use the BRRR method to pull your money out and do it again,,,and again..........and again.
@Nathan Churchill My experience has been great. On my first deal for example Section 8 pays $629 a month and my tenant pays $46. My home is one of the nicest homes on Section 8, it is fairly easy to think the tenant will stay for a long time. I went with a 50 year disabled man who has been on Section 8 for a number of years, he's been there going on a year so far. There is also a huge demand for Section 8 in Wichita. We had 254 hits on my first single family home in 48 hours. Section 8 helps protect my investment because tenants do not want to lose their voucher, so they keep the property in good shape. I prefer a tenant with a housing voucher in a cheaper area than a tenant with no voucher in a C class area simply because at least $629 is guaranteed to me every month.
If you were in Philly I would put you in on one of my single family properties.
You’d get your money back in a year when we refinance and retain around 17% ownership in the building.
This is a fine amount. Investing out of state is easier for me (I've always lived in expensive areas where you can't afford to invest in unless you have a lot of family money). Its as easy to invest out of state than in state if you account for distinct factors. I've helped my last 5 California clients choose, but each place was different since everyone has a different amount of resources, travel aversion or love, and how aggressive thier goals are.
Depending on those factors, you really can find the best locations for YOU, not for anyone else. That's what I help people with everyday. Not hard AT ALL. PM me if you like to connect more.