i have a property under contract in the tarrant county area (dallas/fort worth) for under 60% of the ARV and am trying to figure out the best way to use it to make me money. my first idea was to buy through hard money lender and use there money to rehab and wholesale for a quick 10-30k profit but that will require a large chunk of cash out of my pocket and i may not have enough to fully rehab enough to get full market value. so i was thinking if i got the property section 8 approved which would only require me to add a refrigerator thus very little cash if any out of my own pocket and then get the section 8 tenant and then refinance to pay of hard money lender and also put some cash in my pocket to invest in another property at the same time keeping the property for future equity,and monthly tax flow, tax deduction and so on. does this sound like a good idea?? :roll:
Joe,
Holding rental property isn’t as easy as people make it sound. Depending on the property it can at times be VERY cash intensive.
If you’re just starting out I would advise against holding any rentals until you have a large enough cash reserve set aside to fix anything major should the property need it.
If you already have those reserves set aside then it might make sense for you to keep it as a rental. If you don’t have the reserve money then wholesale the property to another investor and make some quick cash. The next deal is just around the corner.