Buy, Live-in Rehab, Rent, Repeat
Hi Friends,
My wife and I (26) are moving to the Kansas City area next month where we will start our RE journey. We unintentionally discovered our skillsets and the power of RE after buying a house in the Denver area in 5/2019, rennovating a good chunk of the house, and selling it in 7/2021. We parked some of the cash in a Mid-MO property in our hometown shortly after while we finished our time in Denver, and now the 1st is my favorite day of the month.
We are super excited to start the process over in KC. Our plan is to buy a primary with sweat equity potential, live in it for around a year while we get it spruced up, then rent it out, and repeat. Our thinking is that we can buy a few primaries over the next few years with low down payment oo loans, with the intention of adding equity and having them cash flow after we move out, then at the very least we will thank ourselves later in life. The best part is, is that we really enjoy working on the houses. My goal is to have enough passive income support to leave my 9-5 and pursue working on houses full-time in some capacity. I know it will take hard work to repeat this year after year, and there could always be something that sets us back, but a wise man once said "Live like no one else, so later you can LIVE like no one else" ;) Thanks for reading, and if you have some more time, I would apprecaite hearing your thoughts on this and answering any of my questions that you can.
I know others have taken similar paths - any advice?
Do we have flaws in our thinking about this? What can you see tripping us up?
Are FHA loans still being offered in this environment? If so, it is my understanding that you can only have one outstanding FHA loan, so would it be a good idea to use the the FHA first on a more expensive MFH that cashflows better and that we can house hack while fixing it up? Then go forward with 5-10% down convetionals on SFHs?
We will be moving mid-Nov, finding a short term rental while we become familiar with KC, and then looking to buy in the months after. I would really apprecaite any of your reccomendations for Agents and Lenders if you think we would be a good fit. We are thrilled to start this chapter and move to the area, and we look forward to networking. If there are any KC investors needing a reliable handyman, reach out and put me to work! It would be great to learn anything and everything I can from your experiences. I only do solid, clean work.
Thanks again,
Curtis