I have savings of around 90k. I’m looking to buy a distressed property and be all in after rehab at 75k. Are there any cons to using 75k of my own savings, or should I pursue a private or hard-money loan to acquire and rehab a property. Thanks
@Danielle Wolter Thanks. That was my original plan. Just wanted to see how other investors went about purchasing their deals and if there were any benefits to financing the purchase and rehab as opposed to using my cash.
@Alessandro A. There are benefits of using other peoples money, I just prefer cash. That said, I always make sure I have plenty of cash reserves as well. I like to keep 6 months of living expenses in cash reserves just in case.
@Danielle Wolter if I’m all in at 75k, I’ll have 15k until the refinance, which I think is a sufficient number.
I also think cash is king here. You won't have to rush the rehab and depending on your monthly rent you could potentially see all your money paid back faster than you think. And you won't have to rush repairs to pay back a HML.