My Next Move
Hello fellow BP'ers
After a long search of looking for multi family units that cash flow in the Lowell area, and after I was outbid many times on properties by people grossly overpaying for rental properties, I finally decided to look at SFH that I could get sweat equity in. I made an offer on a house in Chelmsford that was accepted. I bought it for $229,000 and it was recently appraised for $307,000 by the town, which my real estate agent says properties in Chelmsford have been selling for 1.2 - 1.3 times assessed value. So with about $50,000 in rehab I plan to do to the property, I am hoping I will have about $80k+ in equity when all said and done. My girlfriend is also planning to start a daycare in the property so I can get some income of that business as well.
I wouldn't call this my first "deal", but it's a half step into the real estate world. My question is figuring out my next move.
This house is solely under my name and I am probably at 90% of my max buying power due to my DTI ratio (School loans are a pain), so financing another property could prove to be difficult. I know you can only get usually 75%-80% for a HELOC so that really doesn't leave me with a whole lot of money I can pull out of the house, even with $80k in equity. The other option, is to put the next property under my girlfriends name after she can prove (2) years of W2's with the daycare.
I was also curious if there are any people from Kansas City that could chime in here. One of my best friends just moved out there so I would have "boots on the ground" to be able to look at properties. The properties seem to be cheaper than my area so it would make financing a lot easier as well as a smaller down payment. How is the rental/flipping market out there? Is there some areas to stay away from?
I am thinking about starting with a flip to make a little bit of cash to invest in a buy and hold property. I have the real estate bug bad and want to start buying more property immediately.
Any thoughts/advice?