150k and bad credit

[Justin B.]

I have bad credit; some old medical bills, one bad credit card and some student loans as well. My credit is shot for now, and I have been slowly repairing it and paying things off, but no bankruptcies.

I am sure I dont qualify for financing let alone fha I assume, but have access to 150k.

I live in Cleveland and my niche is landlording. I share ownership of one duplex already in a nearby area. I want to acquire 2-4 unit properties and I am open to partnering up.

I thought about going through a home inspection course to understand what I am looking at when finding properties, and I wouldnt mind going through a rehab course or apprenticeship either (I have laid asphault before) in order to price out repairs and oversee contractors, eventually.

Around me are duplexes ranging from 35k-55k that will cashflow for 550 month for 2bd with rehab costs ranging from 1-5k for each unit depending on how turnkey I find the property in.

What would you do in my shoes? Buy cash, partner up, a mix of hardmoney and cash? Appreciate any recommendations!

[Tarik Abdullah]

@Justin - "A bird in the hand is worth two in the bush" Why use all your cash to pay off debt to ask someone to borrow money? They can always deny you credit for some reason or the other but will never refuse to take your cash. I would buy a house using 70%free and clear that I could comfortably rehab with a little cash reserve left. Then I would put it on the market below market value to sell fast and maybe profit $8,000-$10,000. With this profit I would begin to pay down debt. I would continue this flipping until I paid debt off. Then after the debt is paid off you can go in with the original $150K and get a loan 1)You'll have skin to put in the game and 2) You can show your experience as a real estate investor with the flips that you did. Always pay yourself first!