How do you make money with a property with no equity?

Question

Yea, you can make money from the cash flow. But, what if you have to pay off the property in 3 years? How will you sell it if it has no equity?

Account Closed · Answer

The thee year balloon might kill the deal. I have personally made money on homes with little equity, but the 3 year balloon should make you reconsider. I had a bad balloon war story earlier in my investing journey, I feel to lazy to type it all out out the moment, but the short and small was I lost on the property.

Jon Schoeller · Answer

You could owner finance it and force the equity. Basically if its worth 140k on the market some people would pay 155 if you allowed them to OF or RTO it back from you. Outside of that or making updates to the home to make ti worth more over the 3 years I am not sure what you could do.

Account Closed · Answer

@Joel S. Thats good

How do you make money with a property with no equity?

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