Hey all, your favorite newbie here. :biggrin
I’m looking at inner city properties where sections of towns are “up and coming”. The problem I have is figuring out the best exit strategy for these homes.
I would like to be in the rental business some more, but also want to make sure I have good cash flow.
I’m looking at 2 shells I can pick up for 15k + taxes (15k). I currently have 1 rental property that I can refinance to get 60k. I estimate that rehabbing each property would cost about 30k each. I also have an additional 10k of cash.
I was thinking that I could pay the taxes, have seller financing on the 15k, and use the remaining 55 to rehab “Property 1”.
This might leave me with a 4-6 month buffer before I have 0 cash (assuming no tenant). If i have a tennat, I was thinking I could Refinance “property 1” to cash out the seller, and finance rehab of “Property 2”
Then use the rents to pay down the bills.
Does this even sound feasible / logical? How would you solve this problem? :huh