I am new to the Bigger Pockets Forums and to Colorado, I am looking to buy my first home (cash). My goal is to buy an undervalued piece of property, fix it up, live in it and use the equity I put into it to continue investing in R/E. I am not planning to buy a 100 homes a year, just to methodically buy (cash) and sell houses using equity and my savings.
The reason I am using cash is because I am not working anymore...I have been working 10 to 12 hrs a day 6 to 7 days a week for the past 4 years. I managed to save a few dollars during that time.
I am open to any comments or advice as to my plan for investing in R/E.
@Greg Martineau sounds like the brrr strategy would work well for you. Welcome to the Colorado Market. Have fun. Happy investing!
Thanks Robert, everything is working out better than I expected it to. The only issue I have right now is that I am not working, so I am not sure how the refinancing will work out in the brrr strategy, just taking it one day at a time right now.
Sorry for the late reply...I logged out a little early yesterday.
Hi Greg, welcome to BP. After getting rents for a few years you will have an income. It will be your cash flow and with the cash flow you can refi to increase your number of properties. If you have the cash to start, you might be able to get a loan on a multi-family property that is showing some cash flow and use the cash flow to qualify. This could protect some of your assets so that all your eggs are not in one basket.
Another idea depending on the cash you have could be to invest big in a smaller cash flowing market and you can quickly have a larger amount of cash flow.
One great thing about real estate investing is that there are many different ways to make a profit and change your life. Good Luck.
@Greg Martineau welcome. Cash is good. If you pay cash, you can make lots of mistakes and not go backwards. With no job or verifiable income, it will be tough to do a cash-out refi. Since you had a job I'm sure when the time comes you can get another. It will take a while to establish income but real estate is a long game.
Thank you Kevin and Bill for your replies...I appreciate your advice. I just went to a B/P meet up last night for Air BnB, I am looking into that route too, but for now I am going to lay low and continue my R/E licensing exam and wait for summer to pass...apparently it can get real expensive this time of year.
Kevin, I like your idea about getting a loan on a multi-family property, I will definitely keep that one in mind. Just a question on your other idea...what would be a smaller cash flowing market? I was looking into buying mobile homes but I will probably wait until summer passes.
Bill, I realized that getting a cash out refi would be difficult...my original plan was to use the equity I add to the house to get a Home Equity Loan and go from there. What would be your opinion on that? Have you seen that work?
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