I’m sure I’m just like 20 mil. others who’ve “caught the bug”, but I’ll start at the beginning!! My hubby (Who IS in construction!) and I have watched our future retirement go up in smoke like so many others! We are now cash poor but property rich & was given an REI series called The Real Estate Success System by ProsperLearning ( It was FREE, so no $$ wasted if it’s a bust!!) and were hooked!!! Our goal is NOT to “get rich quick”, but to be financially comfortable through HIS construction work & connections & MY management, and set ourselves up for a comfortable retirement with residual income through rental property.
We currently have a great deal of family property, which I wish to leave untouched at this time, but also about $30,000 equity in a little rental property we have that will be our future coastal retirement home. It is a duplex with one unit presently rented for the mortgage amt & we vacation in the other. What would be the BEST way to roll the equity into an investment property to either flip or fix up for rental or lease option??
What allows people to retire is income. What I would do is determine how much money per month I need to retire and buy enough rental property to provide that. For example if I need $3000/month to retire and I can clear $300/house, I need to buy 10 houses. After I get to 10 houses I would then evaluate my situation. How stable are these houses, are any underperforming, do I have frequent vacancies or unusual recurring repairs, etc. I would then add houses to compensate and maybe end up with 15 houses. I would then plow all the money from these houses into the business while I am still working so that when I retire I have a “business” that generates the income I need to retire.
And rentals is what I would do, not any of that other gimmicky stuff like flips and options etc.
Yeah, I WOULD like to use a HELOC to get started…and my hubby would REALLY like to put his skills to GOOD use for us fixing up a few properties to begin a cash flow. I just need to find the right lender!
Blue Moon’s way is an ideal way to go. Residual income is key for retirement. Short sales and flips are great money makers and great way to raise money now.
Let me back up. First, what are your goals? Plan, plan, plan. How much money would you need each month to be comfortable?
As far as getting a line of credit, lenders only lend up to 80% of value. For example if your rental property is worth 100k, they’ll loan you up to 80k. So, if your balance is 50k, then you can get 30k to buy your next rental.