How do I go about investing when I need to pull equity....not having all of DP. I am eager to get going! Thanks for any help advice for this newbie!
Hello. I used a HELOC for a down payment on our rental. We had good equity in our primary residence.
Thanks Chris. How do you find deals with not much capital? Hard to find the 1% rule. Tips there?
Also, what markets are you looking in? I have some in mind and looking to duplexes in order to carry the property....
I'm currently looking outside of my immediate area within 2.5 hour radius. Brantford, London, st Thomas. The houses are old but cheaper requiring less money down. I'm in the early stages myself.
@Nick Ovington Everyone has a different appetite for investing and cash flow margins. The 1% rule is great if you can find it. But sometimes there are strong investments out there that don't work under this criteria.
My last deal I bought at $580,000 invested $30,000 in renovation. The rents come out to $5,025 per month with the 4 units. I'm at $610,000 all in on purchase price.
In this scenario my $5,025 / $610,000 doesn't fit the 1% rule. This property is a cash flow monster. Brings in just under $2,000 per month (all utilities are paid by tenants). Most would consider this a strong return.
The point is this: do a deep diving analysis of the numbers on every deal to see if they make sense for YOU or not.
I get what you are saying. I need help putting a plan together for financial freedom. Pm me if you can help. I've studied for years, and am still worried about how and where to invest. I over analyze too much. Shall I invest in a PM with properties out of town.... the BRRR strategy seems to be good. I'm starting with little capital. Need direction here. Thank you in advance!
Thanks guys. I'm still having a tough time figuring out where and what type of property to Buy. Are there any good coaches out there to help build a plan?
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