Getting Started In Subject To
I'm working on my own personal business plan and I wanted to hear from some other sub-to investors about what it took to get them going, specifically money. I'm like most people in that I have a mortgage, car payment, 2 kids, wife, etc so I want to be prepared for the worst case scenario.
Including investments in advertising, first house purchase, and the very real possibility of eating the mortgage for a couple of months until a buyer is found, how big should my nut be? $10k? $20k?
Any input would be appreciated.
Tony
sometimes you will have to put some down to get the property. I am looking at two deals now. One will cost $5K upfront, and subject to thier loan. The other might be about 50K, and subject to the balance of the loan.
I expect you should have about 6 months cash to cover empty properties while you have low numbers of properties. When you get to about 10 you can drop that to 3-4 months of cash, or reserves. The more you get under your belt, and rented the less odds of having too many empty at once.