Is it silly to buy a sfh home with your own money and creit with the intent of selling it as a L/O? Also, how does one work out the numbers?
Thanks! Chantelle
There are several ways to buy houses
All cash with your savings
All cash with loan and savings
All cash OPM either partner or private
L/O the property yourself
Buy sub2 with 0 or little down
Obviously it makes more sense to buy with little or no money down of your own if you still get a bargain. I like the L/O idea when you sell as it should give you a better person in the property who hopefully will take care of the property better and will pay on time. The numbers will work in low to middle income properties and probably not too well on high dollar houses. Try to stay under $150,000 if you can. Try to find deals with equity and get a good deal. Hard to pay retail and make much cash flow.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
[ Edited by Tedjr on Date 12/24/2003 ][ Edited by Tedjr on Date 12/24/2003 ]
I wouldn't say it's silly to use your own money Chantelle, but why would you tie up your own money if you dont have to. There are many options available, like tedjr has outlined. The best thing to do is to find out what type of market you want to work in and then figure the different ways to get the house and pay for it. Hope that helps some. Let me know how you fare. Good luck
There are several ways to buy houses
All cash with your savings
All cash with loan and savings
All cash OPM either partner or private
L/O the property yourself
Buy sub2 with 0 or little down
Obviously it makes more sense to buy with little or no money down of your own if you still get a bargain. I like the L/O idea when you sell as it should give you a better person in the property who hopefully will take care of the property better and will pay on time. The numbers will work in low to middle income properties and probably not too well on high dollar houses. Try to stay under $150,000 if you can. Try to find deals with equity and get a good deal. Hard to pay retail and make much cash flow.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
[ Edited by Tedjr on Date 12/24/2003 ][ Edited by Tedjr on Date 12/24/2003 ]
I wouldn't say it's silly to use your own money Chantelle, but why would you tie up your own money if you dont have to. There are many options available, like tedjr has outlined. The best thing to do is to find out what type of market you want to work in and then figure the different ways to get the house and pay for it. Hope that helps some. Let me know how you fare. Good luck