We recently closed on a SFR that my husband and I will be house hacking/DIY some cosmetic renovations (paint/floors). We are almost done with the renovations and plan on moving in in the next few weeks. We are pretty low on cash at the moment due to these renovations. There is a FSBO that has popped up on a street near us that is in an excellent rental location and in good condition, for a good price (the numbers work out well). The question we are struggling with... should we pursue it, or wait to build up our savings some more before diving into our next property? I have been trying to work out some options for creative financing, but am concerned about digging ourselves into a hole that we can't get out of from not having enough cash on hand before diving into another deal. Is there a rule of thumb for how much to have as a safety net before purchasing more properties? What would be the smartest decision?
If you sold the house you are just finishing rehab on now, how much profit would you make?
If the numbers are good speak with the owner first to see if they're open to owner financing. If they're not, consider looking for a private money lender.
And if worst comes to worst and the property sells to somebody else, subscribe to missing out on a good deal (due to lack of funds) SHOULD motivate you to hustle and create multiple sources of income to funnel into your future deals.
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