Advice for investment
Leandro I am located in Louisville, Kentucky. Right now I am living with my mom, who is my business partner, in order to save money to buy an investment property. We live in a house with equity approximately of 90K. I am thinking of refinancing to take that money to put it as a down payment in a 480K fourplex, even knowing my mortgage will increase, but on the other hand, I can generate cash flow if I rent that property out. Do you think it would be a good investment strategy for beginners?
Thank you in advance,
Leo.
#3 All Forums Contributor
- Investor
- Austin, TX
You need to cash flow, don't stretch to make deals work if it doesn't pencil out. If you break even while missing one tenant you are fine.
Quote from @Leandro Leyva:
Leandro I am located in Louisville, Kentucky. Right now I am living with my mom, who is my business partner, in order to save money to buy an investment property. We live in a house with equity approximately of 90K. I am thinking of refinancing to take that money to put it as a down payment in a 480K fourplex, even knowing my mortgage will increase, but on the other hand, I can generate cash flow if I rent that property out. Do you think it would be a good investment strategy for beginners?
Thank you in advance,
Leo.
I'd personally get a HELOC to keep mortgage down and likely lower interest rate. Then use the HELOC to go purchase properties that you can BRRRR.
