Updated over 6 years ago on . Most recent reply
Realized opportunity !!!
So here's an ideal that just came into my mind, and the opportunity has been there all along, but with out any real estate knowledge I had no vision on what to do with. So it's basically been a liability instead of an asset and has basically just been siting there.
So in my family we have a ten acre plot of undeveloped land and outside from that a home that we have about 200K in equity. So what I have in mind now for the land is to use a home equity line of credit from the home that we currently own, and build two houses on the ten acre plot. Utilizing anywhere from a quarter to half an acre for each home, depending on what the comps are for the surrounding neighborhoods. From there I plan to sell one of the homes to pay of the home equity line of credit and the rest of the existing mortgage on the property that will be used as leverage to get the equity line of credit.
From there I would then hold on to the other property as a rental and then from that property leverage it to develop the next property, and repeat the process until I have developed the full ten acres.
I guess that I can't really say that this is a BRRR since there is no actual acquisition. I guess you can call it a DRRR lol Develop Rent Refinance Repeat.
Does this sound like a great plan?
What other details am I not seeing?