Hello all! I am fairly new to real estate investing, yet have tasted a little success and love it!
My main exit strategy has been wholesaling, but I just came across a deal that I would like to hold onto myself.
The house APPEARS to be in fantastic shape! Very well maintained, as it was a home that was inherited from the owners mother. To abbreviate my question, I would like to experiment with the BRRR strategy; notice I left out an R bc I feel it needs no "rehab" work. The house "zestimates" around 42k and I pulled comps in the area that supported a number around 35k'ish. I have the seller down to around 18k-20k. She's even willing to take 3k down and payments of $500 a month. The location of the home is in memphis(38108). Not the best of areas, but the home seems to sit in a decent part of that particular zip code. I want to finance this home with the bank, rent it out for a few months, and then refinance to use some of the equity for another purchase. Any tips and advice (type of loan/preferred banks/process/likelihood of being able to refinance in that zip code/etc) would be more than appreciated!!!
A lot of banks have minimum requirements in terms of loan amounts. You need to call around to find out what they're, and if your property is a good fit.
An easy way to get referrals to is search on BP, active members in your area and reach out to them. They might be able to tell you more about the area you're interested in - that you're not aware of.
Hi @Rashard Alomari
Buy in a Comfortable Range
Take action. Buy your property at a price range that’s comfortable for you, but don’t go into insecure neighborhoods, especially the C and D-class areas. Finding a buyer or an investor might be difficult there. Alternatively, if you spend too much on a property that is considered as an A-class property, it may be tough to find a buyer. So, depending on how deep your pockets are, pick a property in a good neighborhood, usually a B-class area, with good infrastructure and within close proximity to facilities.
Hope this helps and best of luck,
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