Newbie starting small, how to build?

12 Replies

I am from a very small, and poor area. I have bought a foreclose for $19k. Probably worth at 30k. I’m a single mom on low income but save most of my money. I want to build for my future and my daughters. Any advice on how to keep going? Building? I make 2k per month and able to save around $1000 per month. I’m reading, researching and learning all that I can. I put down 5K for the house and got a bank loan for the rest. I want to keep buying and reach 10 houses in a few years!

Hopefully you plan to live in the the property and renovate? 

I'd take advantage of your savings and be frugal with the rehab only updating the most valuable items. I'd focus on value adds projects and keep it simple. Live in the property for 2/5 years and sell it tax free. You could repeat this process on the next one and take advantage of contractors to speed it up. The first deal is always the hardest so congrats on starting the journey. 

The key is keeping the money moving in an upside market. 2020 is just around the corner so who knows what's going to happen. 

Originally posted by @Ashley McSpadden :

@Jaron Walling

I currently live with my boyfriend in his house - so I’ll rent the property out once I fix a few things. The foundation needs jacked up in a few rooms and will have to do the flooring.

The subfloor needs jacked up to level it out? Were you aware of this issue before you purchased it? 

 

Originally posted by @Ashley McSpadden :

I am from a very small, and poor area. I have bought a foreclose for $19k. Probably worth at 30k. I’m a single mom on low income but save most of my money. I want to build for my future and my daughters. Any advice on how to keep going? Building? I make 2k per month and able to save around $1000 per month. I’m reading, researching and learning all that I can. I put down 5K for the house and got a bank loan for the rest. I want to keep buying and reach 10 houses in a few years!


You need to increase your income. Since opportunities are limited in your area, you may have to move in order to find more opportunities. 

I would recommend looking into a cash out refinance on the property. If you can remodel the home, get it in nice shape and get the value up to the 60k range, you will be able to get your money back out and start this process again. 

@Ashley you got an advantage since your dad can do most of the work in the house. Fix up the house, rent it out and do a cash out refinance so you can get your money back and get another one!

@Ashley McSpadden congrats on saving 50% of your income that’s impressive, especially with a kid. I would look at house hacking. You can get a duplex with 3.5% down live in one unit and rent out the other. Keep saving and I’m a years time move out and rent your unit.

@Ashley McSpadden

Jacking floors is a fun time. I jacked a 3 story house, one time I cranked the jack and heard a huge crack over my head. I ran so fast, I think I broke a world record. Make sure to follow what your local code says as far as pillars holding up your house.

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