Single Family Home Investment Plan
I am looking to start in real estate by buying my first rental property. I am hoping to receive some guidance on the following plan:
Currently saving approximately $3,500/month and will be at a total of $22,000 in savings by the end of the year. I am looking to purchase a home with a mortgage in the price range of $55,000-$75,000 with $25,000-$30,000 in repair budget. The home will be renting in the range of $1,100 - $1,300.
My question is, I am trying to decide if I should consider waiting to save enough so that I can buy the home and pay for the repair in cash, or if I should go the route with the mortgage.
The future goal would be to refinance on the home and use the refinance loan to purchase a second and so on.
If anyone has any experience in the above, it would be great to connect.
Most Popular Reply
@Account Closed, you're first statement about a $75,000 house not being habitable is untrue. That is HIGHLY market dependent. I'm closing on a small single family house in the next week for $31k that is fully functional, but dated.
@Miljan Vukovic, one issue I see with your plan is that the rental prices may not justify doing a cash-out refi even if the value of the property has increased. Try using the BRRRR calculator on the bigger pockets site here to analyze some prospective deals.