Updated over 4 years ago on . Most recent reply
Bought a 6000$ house
Ok i bought a house for 6000$ about 3 years ago that the whole house was basically just studs.no furnace, eletrical, or plumbing and had to do everything from looking online at youtube videos.i actaully never did home remodeling before so it was a challenge without any contractors and what not so i spent about 10.000$ total on the project. so i am now finished , and there are people willing to rent already for 750$ a month And im currently broke and unemployed this will be my first rental but i have others houses right next to it. that i must rehab as well..So what are my options to get more money to fix up the other homes i have? will i even qualify for a loan if i dont have steady income job? because all i would like to do is get funds for my next project any suggestions would help. thanks,
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- Real Estate Broker
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@Frankie Betancourt get the property rented so you can catch up financially. At the same time, talk to a lender. You can do a "cash out" mortgage to take out your equity. Let's say the home is worth $50,000. Ask the bank to loan you 70% of that value. They will give you $35,000 and your monthly mortgage will be somewhere around $165. Your rent payments will generate a cash flow of around $300 so the property is sustainable, and you can use the $35,000 you cashed out to fix up the next house. Rinse and repeat.
You really should read "Buy, Rehab, Rent, Refinance, Repeat" by David Greene and wrap your head around this concept. You're on the right path but missing some basic knowledge that this book will easily answer.
- Nathan Gesner
