Smart move or think again?

2 Replies

I am fairly new to the real estate. I just need some honest opinion from people who been doing this. I am about to receive about 80 to 100k. Not really receive but am going to get this loan I should say. It's a HELOC loan.

I want to buy some houses in my home town that are affordable. I believe I can get 3 houses that are ready to be rented out when I buy them. Or they might just need a little work as well. We live in a revters town.

If I get these homes I am thinking I can do two things.

One if course is to rent them out and from the rent save the taxes,insurance, cap ex, vacancies, and repairs included. With all that I believe I can cash flow around 20k.

Second option would be rent to own. Many people in that town do not get traditional loans so this can be an option as well. 

With the first circumstance I can brin in around 20% return on my money per year. 

My primary goal is to produce 5000 monthly of cash flow. When I do that I want to retire and do real estate full time without the burden of making money to maintain the family.

Sorry for the long post but the replies would be greatly appreciated.

@Fernando Landeros if your goal is cashflow why not take that $100K and buy a multifamily with as many units as you can get.  Without knowing anything about your market, lets just say you could put 25% down on a $400K property with 10 units, with each unit cashflowing $250 per door per month, that's $30,000 of cashflow per year, halfway to your goal of $60K per year.

Ultimately I do want to do multi family investing. I like how you can force appreciation and have the property managed by a property management company or have a handy man live there at a discount. 

What I am thinking is that once I have 3 homes I would be able to refinance using one of the to buy another home and add some extra cash flow. 

I am also thinking if the economy gets bad I will still be able to rent these homes out.

I just want to put this money to use in real estate.

Thanks for your reply.