If you have discretionary cash, lines of credit and 401k borrowing for plenty of quick cash, what is the top strategy to put them all to work? Is there a better strategy for buy-and-hold vs. flipping?
What is your end goal? Once I know that - then I can know the best strategy for you.
Would like to grow a healthy cash-flow portfolio in the next 5 years to supplement (or completely replace) retirement. I know this points to buy-hold, but growth seems more possible by leveraging existing credit/cash and acquire more equity, perhaps through flipping.
Buy and rehab for as close as possible to your 80% refi number - then you can refinance all of your cash back out to use again .... Your ROI is a number close to infinity and you can repeat indefinitely - And YES - there are still deals out there that will work ... one just closed a couple of weeks ago in The Woodlands on MLS at about 70% of value and only needed light rehab - maybe $5,000-$6,000
ARV - 177,000
Sold - 123,000
Rehab - $5,000
Total invested - $128,000-$129,000
80% refi - $141,000
Rents - $1,500-$1,600
My initial offer was $120,000 - They declined to counter - Now that I see the final sale amount, it irritates me that I was so close but missed the deal
Can you cash out the ($141 - $129 = ) $12,000 when refinancing? Also, is there an LTV limit (I've heard 75%) on refi?
Would love to hear more about what you are finding in The Woodlands and nearby area.
Yes, you can cash out for the full amount of LTV that the lender requires - some require 75% and some allow 80% - also, a lender that allowed 80% may require 75% on another deal if your personal situation changes - debt to income, etc.
The deals are out there - I am constantly on HAR looking at my target neighborhoods - I also have automatic notifications set up when a new property comes on the market that meets my criteria.
Good Luck guys. There should be tons of flooded houses to buy soon.