Rent or Flip

Rent or Flip

Lawrence, KS · Member since 2015 · 45 posts · 4 votes

My name is Beau, I recently bought a house for 38000 and I put 12000 in to it, (a total of 50000) it was a foreclosure with some foundation issues.  I was able to get it fixed for cheaper than most people because I am a general contractor.  After everything is said and done, the appraisal is now around 105000.  Im not too worried about making quick money, but more interested in building my wealth and passive income.  How difficult is it to pull equity lines off of a paid off property, to go buy more homes without putting myself in a huge risk.  Any help is appreciated, thank you.

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  • Colin SmithBusiness Member
    Realtor · Colorado Springs, CO · Member since 2013 · 989 posts · 447 votes
    11y

    You could do a cash out refinance and have the best of both worlds. Not only will you have it as a long term rental but you can pull all that cash out of it and move onto your next deal. Just be sure if you keep as a long term rental it is something that will cash flow well and is in decent neighborhood good for rental properties.

  • Lawrence, KS · Member since 2015 · 45 posts · 4 votes
    11y

    Colin thank you for your advice .Right now in the neighborhood the rent goes anywhere from $900 to $1200 a month for a three bedroom two bath. My house would probably fall into around $1000 a month with the updates I did. Would you recommend doing just one more product or turning it into two if you can find the right deal.

    thanks

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    11y
    If I were you I would sell it. That's a heck of a profit to make on a 50k all in flip.
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