Good day, I would like to first introduce myself, I am Andrew. I have been lurking for quite a while now, but am just now deciding to become more active. In the past year I bought my first house, which was a forclosure, and totally rehabbed it. I now proudly have roughly 75-100k in equity. I learned a lot in the process, and am trying to decide whether to continue on the pathway of real estate investments or to go down another road.
My question for you all is how to go about getting into this. I have all the skills/connections to remodel a house well and in a timely manner. I think that my ultimate goal is to get a nice portfolio(15-25) of rental units and allow my wife to manage them. My only question is how to go about getting started. Through research, I have found that in order to buy an investment property(flip or rental) I need to qualify for both loans. I have also found that rental income can only be counted as income(for mortgage qualifications) if I have 30% equity. Here lies the problem. . .
If I decide to rent homes(we will call this "option a") I could probably pull off using my equity to get 1 SF home. However, in order to keep 30% equity in that house I couldn't pull cash out of it to finance another unit. I have no desire to own 1 or 2 rental homes while having all of my money tied up in them. My other option is to flip homes first("option b"), and then use the cash gathered from doing this to finance rental units. One problem with this is that I am not sure if I could afford to finance a home AND put money into rehabbing it. Another issue is that my wife would NEVER let me sell this house and live in an RV while flipping homes lol. So I would need to hold on to my house if flipping.
I don't have any debt(other than my house), my wife and I have a combined income of around 90k a year, and houses that we could flip range from 150-250k.
Let me know what kind of ideas you all have! Thanks!
My question for you all is how to go about getting into this. I have all the skills/connections to remodel a house well and in a timely manner. I think that my ultimate goal is to get a nice portfolio(15-25) of rental units and allow my wife to manage them. My only question is how to go about getting started. Through research, I have found that in order to buy an investment property(flip or rental) I need to qualify for both loans. I have also found that rental income can only be counted as income(for mortgage qualifications) if I have 30% equity. Here lies the problem. . .
If I decide to rent homes(we will call this "option a") I could probably pull off using my equity to get 1 SF home. However, in order to keep 30% equity in that house I couldn't pull cash out of it to finance another unit. I have no desire to own 1 or 2 rental homes while having all of my money tied up in them. My other option is to flip homes first("option b"), and then use the cash gathered from doing this to finance rental units. One problem with this is that I am not sure if I could afford to finance a home AND put money into rehabbing it. Another issue is that my wife would NEVER let me sell this house and live in an RV while flipping homes lol. So I would need to hold on to my house if flipping.
I don't have any debt(other than my house), my wife and I have a combined income of around 90k a year, and houses that we could flip range from 150-250k.
Let me know what kind of ideas you all have! Thanks!
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