I read sometime ago about a recommended method , regarding Buying rental properties , as well as flipping houses .
I can't remember what the actual method was , but I " believe " it was ...... Flip, Flip, Rental, Flip Flip, Rental, .... wash, rinse and repeat
What I'm wondering though, is what do other members / Investors recommend, if I'm starting out currently with having jut acquired a Future Rental property ..... with my goal being , to purchase and aquire Rentals .... But along the way to purchasing Rentals , I know that I will need to Flip a few houses, in order to get money to purchase the Rentals ( for the 20% down , as well as the costs for repairs in cash ).
Since purchasing a property as a Rental, I won't be allowed to do a Cash-out refi. for 6 months to 1 year , before I can tap into that Equity and use it for the 20% down/ repairs.
So by Flipping a few here and there , this would give me quicker access to the money needed for the 20% down and repairs.... correct ?
Hoping to get some feedback please and guidance on what steps to take next, since I have my first Rental... just need to know what to do next ( another Rental or to do a Flip ) , so that I can continue on in the pursuit of building up a portfolio of Rental Properties
Thanks for the help everyone
I've never heard of that exact method- but I've been thinking about the same thing. I'm thinking of flipping a few times to build up some capital, then reinvest that into a rental. I see no reason why it wouldn't make sense to repeat that method over and over if the market and your area has room for flips and rentals alike.
I'm interested to see what experienced invested say about this.
It's not that simple. FFRFFR isn't a plan...it's just a series of arbitrary steps that isn't based on any goals.
Start with your financial goals, then develop a series of measurable milestones leading up to those goals. The steps along the way are the properties you buy/flip/hold/etc... The strategy you use at each step depends on the plan that is developed.
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