Updated almost 5 years ago on . Most recent reply
HELP - Seeking advice on my first Multi-Family rental deal
I currently own a 1BR/1BA in Canton, Baltimore. The home was listed as a 2BR/1BA. However, the previous seller used the open area of the basement as a BR (so not a legitimate BR per se). The area is considered an up and coming area and is a sought after area within the city. I purchased the home using a VA loan 5 years ago for 216K.
Today, I have 36K of equity within the home and I’m trying to determine the better option - renovate or use the equity to invest in a multi-family property.
Ideally, I would like to expand the living space to a 3BR/ (2BA (full). The expansion would then match the comparable in the area and either be a great flip or rental option. Personally, I believe 36K is not a realistic amount for the expansion. As I continue to interview contractors or potential architects for an actual quote. I figured I would query the biggerpockets forum for expert advice.
Additional thought:
- Is there a financing strategy where I can receive additional funding towards this expansion?