Starting out in rentals

[Randal Spence]

Hello bigger pockets,

I am newer here but I have a few questions I need help answering. I currently own a single family home that’s fully paid off, I am in between selling it or using it as my first rental property. It is in need of some repair, I don’t have a lot of capital to put into this. This is where my question of do I try to do a cashout refinance and buy more property and rent it as is or do I make cosmetic upgrades using a cashout refi, or do I just sell it and buy a property requiring less repair? Overall the property would cash flow around 400 dollars at the moment based off of current market rent. My next question is would a cash out refi be the best way to go with this property if I wish to continue to grow my portfolio or is there a better option that I’m not aware of?

Thanks for your time in advance,

Randal

[Tim Herman]

@Randal Spence I'm a big believer of house hacking. Buy small multifamilies 2-4 units. Use owner occupied financing < 5% down. Live in one and move every year for 10 years. End up with 20-40 cash flowing units.  As far as present house, have you run it through BP rental calculator to see if it would be a good rental.