I have a property I bought for cash, what's better for me?

I have a property I bought for cash, what's better for me?

Flipper/Rehabber · TX · Member since 2021 · 12 posts · 4 votes

I have this property in Forth Worth, Texas, part of the Metroplex, it's 1770 sqf, 3/2, already renovated, I got it cash so no Deb in the property.

I want some advice since this is the Firts invesment property I have, what should I do?

Rent it and collect and try to get a mortgage to try to do a kind of Brrrr strategy?

Or what?

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  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y
    Originally posted by @Christian Santillan:

    I have this property in Forth Worth, Texas, part of the Metroplex, it's 1770 sqf, 3/2, already renovated, I got it cash so no Deb in the property.

    I want some advice since this is the Firts invesment property I have, what should I do?
    Rent it and collect and try to get a mortgage to try to do a kind of Brrrr strategy?

    Or what?

    A debt-free house?  Congrats! I have a few of those, too.  How'd you do it?

    Depending on your goals and landlord experience, your options are basically to hold or sell or lease option. 

    If you hold, most would put a 75% loan on it to free up capital again and/or optimize your COC returns.

    If you sell, factor in sales expenses (8-10%) and taxes (ordinary income if owned less than 1 year).  Transaction costs and taxes keep me holding almost always. 

  • Flipper/Rehabber · TX · Member since 2021 · 12 posts · 4 votes
    4y

    @Steve Vaughan that's an amazing advice! I think that's something I will try, will check a bank or a mortgage company, did you have any recommendations of what's the best one to go?

    I move to the USA 5 years ago, I sold a family house in my home country since I get married here and I am starting with that seed capital

  • Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    4y

    HELOC would be the best. You can utilize the equity for any strategy.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y
    Originally posted by @Christian Santillan:

    @Steve Vaughan that's an amazing advice! I think that's something I will try, will check a bank or a mortgage company, did you have any recommendations of what's the best one to go?

    I move to the USA 5 years ago, I sold a family house in my home country since I get married here and I am starting with that seed capital

    I like local banks.  I don't remember ever seeing a national bank or mortgage co or broker support youth sports or the arts or anything in my community. 

     I use local banks and CUs I have accounts with.  They are direct lenders so usually don't have an origination fee. 

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