Let’s say that I find a Condo that is appraised at 28k, but selling for 22k cash. Because of the low amount, financing is impossible so I buy the Condo with cash and rent it out for $500 (2/2 rent in the complex and others around it look to be $500-$650).
I now have this Condo with 28k equity in it and 0 owed. Can I get an equity loan of any amount on it or is the money locked down until I sell?
Or is it possible to find a lender to let me buy say 5 in same building at once, which would be a loan of 100-120k.
Or should I look for a HML and then re-fi the condo?
Lenders will let you put a new Non/Owner loan on it and take the cash out. However, I would be hard pressed to find anyone who would bother with a $20,000 loan. In some states it might even be consideder illegal because when you add in all the costs to do a loan. Some will argue with me, but most sources I have charge extra points on anything less than $50,000 and have minumums of at least $25,000.
A home equity line with your banker would probably be the cheapest in the long run.
This may seem extremely naive, but where can you find condos for $25K? (Im from California where it costs nearly that much to fill up your gas tank).
That is how you become a Millionaire by doing stuff like that in 3.6 years not 5 you would have it owned out right and then positive cash flow from there plus you have increased your net worth because of the purchase and the cash flow and in 3.6 years you will have some appreciation also
An other Idea is you could create a note against the property and sell it to a note buyer too and people buy all kinds of notes and you could get almost anyone to do that alot of people have 20-25 k to buy a note with maybe even a business associate could buy it from you.