Strategy for buying my first income property
After years of reading, learning, discussing, and planning.. I’m ready to pull the trigger on my first income property!
Well... I have some more planning to do. Quick background on me: I’m from the greater Grand Rapids, Michigan area. I’ve flipped my first home for a $55k profit and sunk it all into my current family home (this was all before I started learning about RE investing). So to get my money back, I’m in the process of refinancing and will have about $60-$70k to play with, pending the appraisal.
My current strategy to maximize every dollar I have is to hunt for a fixer upper or, more realistically, a duplex to house hack so I can get a primary loan on it. While moving out, I plan on renting out my current family home (estimated cash flow $500-600 per month). By following this strategy I will end up with two income properties from the $55k profit I made three years ago.
Does this strategy sound realistic? Or am I biting off more than I could chew by starting out with two income properties? Also if you have any advice or tips on the legality of pulling this off, it’d be greatly appreciated!
Cheers,
Cal