how do you determine if a property is worth you investing in it. i’m attempting to purchase my 1st property. i see an ovwner financed deal for 400 down 325/month. it needs alot of repairs from what i see from the outside.
i would like to repair it using hardmoney and then rent it.
my credit is not good and i’m in the process of working out some of my credit issues.
i’m looking for a start
thanks/newbie
Experience investors make their profit going in. That means a 20% of ARV as profit. That is after all financing, fix up, holding acquisition and other costs. If you plan on renting you will need that 20% cushion to give you good cash flow. Using hard money means you will have to refi at the end and therefore add thousands to the costs.
You can do sweat equity with hard money but you won’t get done in time and they may get the house.