My strategy. Thoughts? Advice?
Okay, here's my situation:
I'm 25 years old, Bought a house about 2 years ago for $105,000, FHA 203k loan, did some rehab to it. Living in it for the last 2 years, renting the extra rooms out to friends, making positive cash flow on it. In the current market, after I put about $15,000 more into it, it should sell for $190,000 based on comps right now.
I'm ready to buy my next one, move (tennants with me), and sell the first one. I'm pretty sure, I'm going to have to refinance this one with a conventional mortgage, so that I can do another FHA 203k on my next house.
I can't get conventional financing on a lot of the houses I'm interested in, because they need repairs, and of course I can only have one FHA loan at a time.
So, after I buy the next one and move, put 15k into the first one, sell it at hopefully $190 and then put that tax free profit into either a cheaper all cash flip property, or buy another house to rent with a mortgage.
My current liquid assets is at about $40,000.. so putting 20% down on a 120-150k house will make money tight until I sell the first house.
What do you guys think?