New to Real Estate investing

[Larry Chancellor]

Hello everyone!! My name is Larry Chancellor and I am new to real estate investing. My wife and I have started our company with the goal of financial freedom and travel. I have been networking in the Pittsburgh area and spreading the news about my interest to everyone that I come in contact with. I have a co-worker who has recently began to dissolve his real estate business because his partner moved out of state. He has property that he is trying to dump and he is giving us the option to finance the property through his company. My question is, would this be a good way to start acquiring property? The property has tenants occupying them, however the terms he has offered would create a negative income stream for 3 years.

[Trent Rogers]

Originally posted by @Anthony Angotti:

@Larry Chancellor That's entirely a personal choice. The benefit to fixing something up to what you want is that you could use that equity in the form of a HELOC to invest.

That's what would draw me in. 

 This is exactly what I did with my first home which later turned into a rental. Having that line of equity not only allowed me to rehab it, but gave me peace of mind for any surprises that popped up while it was rented. Down the road that equity may give you the money you need to snag up a great deal. I'm a big fan of the fixer upper with a heloc because it let's you control the money and do the rehab at your own pace especially if you're doing it yourself. Plus if you get hit with an costly surprises your not having to come up with cash, or putting it on a high interest credit card.