Advice on different purchasing ideas

[Lucy Tran]

Hello, 

I have inherited a house but it is not in my name yet, it is in my mother's name. I have the option of "purchasing" this house from her and she will let me have the money (75-90k). I have the freedom to do what I want with the cash but I also have to pay it back in monthly mortgage payments. 

With this cash, I am thinking about a partnership with a colleague and purchasing wholesale to have a few rentals. I can also purchase a fixer-upper and rent it out. I am unsure exactly what to do. Instead of "buying" this house from my mother, I can also just buy a turn-key rental home and have a mortgage on that home instead but then, no cash. 

Any advice would be highly appreciated. Thank you.

[Dan Krupa]

@Lucy Tran I am here local in KC. Not sure where you are located but you have a few good options. Cash out refi it, rent that house and then get yourself into an MF you live in. To me, that is the best scenario. Live in it, get a HELOC on it and use that money to start to flip. If you live there for two years you can sell it and no capital gains. You could sell it and 1031 exchange it into a larger MF but then you don't have a place to live. Lots and lots of good options. Get to know the market. The first step is to figure out your return on equity. If you have a ton of equity and are getting nothing or if you rent it out and only get 1 or 2% then you need to use that equity to get into something that cash flows better.