Hello, I am new to this site and WoW! there is a wealth of information on the forums. My head is spinning. There are so many of you with great advice. I have one rental property that I purchased very cheap(3,700) the draw back was back taxes were owed (4,000) and rehab cost (7,000) I needed cash flow so I’m now renting for 700 monthly. I am considering the idea of selling the property and reinvesting in other properties. I have a friend that would back me as an investor. should I owner finance? continue to rent it out? or sale? Thanks!
I would finance it to get the equity out and invest the equity and still have the house for cash flow.
Ditto…don’t sell the goose that’s laying the golden egg each month.
Get out what money you need. You could put it to use on the next deal. Your numbers are really good on this one. If you can replicate that several times, it will change your life.
Thanks! Great info didn’t think about getting the equity out of it! Question #2… I live in the south and there are several forecloures, pre-forecloures available,abandoned properties, and deliquent tax properties that can be purchased. Which do you think I should try for being a newbie after i have obtained cash?
My advice is to not pigeon hole yourself into only looking for a certain type of property to buy. Don’t say that you’ve read a book on buying foreclosures at big discounts and you’re only going to look at those. I’ve bought good deals thru online auctions, foreclosures straight off the MLS, from regular owners who listed w/ an agent on the MLS, etc. I once bought a cute 3/1, about 1050 sq ft in great condition straight off the MLS. The owner was an older lady. I think her family was putting her in a nursing home somewhere. Her house was basically move in ready. They priced the house way too high and it sat on the MLS. I watched the price walk down over time to a point where it almost made sense. In the end, I got a nice house for 19k that I only changed the electrical outlets and light switches on and then rented out for $550/mo. I’ll do deals like that all day long. My point is to not put on the blinders. There are so many houses for sale out there. Don’t be short-sighted and say you can only make money w/ pre-foreclosures, foreclosures, tax delinquent properties, etc.
Thanks Justin0419- Your are absolutely right. I watch MLS all the time to look at listings in my area. in fact I have an app for it! I have seen numerous listings foreclosures on there as well as stright sales listings. So it would be smart to not focus on a certain type of property?but first things first is to see how much equity i can get out of my rental property?
Also keep in mind that SFHs are generally going to be the easiest properties to get out of if you have to dump them. Your buyer pool is larger. Not everyone wants to be a LL, so there are fewer potential buyers for duplexes and up. You’re right, knowing what you can get out of your current property first will show you what your possibilities are for the next step.