Clueless Newbies With Big Head Start
Hello,
I was hoping you guys could provide me a few tips based on the unique situation I'm in. For the past couple years I've wanted to start building passive income, and I'm very interested in real estate. I just hit 30, I'm highly conscientious and learn quickly, and I want to beat the 9-5 life.
My wife and I both work full time, combined gross income is about 76k. We have 23K in savings. We have no children. I also have a twin brother; he and his wife also work full time, similar gross income, probably 4k in debt, also no kids.
My grandmother just transferred a house to us that is currently estimated at 375k on zillow and redfin. We live in the Fresno, CA area. The house is listed as a 3/2, but it technically could be a 5/3. There are 3 full bathrooms, and the other two "bedrooms" are on one end of the house, which was converted into a "mother in law" section. Basically, the mother in law is not represented in the "3/2" designation, so we're hoping there's some additional value hidden there.
We are unsure what is the best way to proceed with a REI strategy with starting with this home. My brother currently lives there, so expenses are stable for now, we're not losing anything. The house is in very good shape in a good area of town.
- We've considered selling for cash (maybe do some upgrades first)
- Sell in Spring/Summer of 2019, or before the next "crash"?
- Rent out this home? (probably between $1600 - $1800)
- Sell and buy a multi family?
I've read up on the 2% rule and this seem to be an utter fantasy in Fresno CA, which is pretty depressing.
We feel that we've got a very fortunate head start that many people could only dream of, but we're not sure how to take advantage of it. Any tips would be greatly appreciated!
Thanks