Looking to buy first rental advice needed

[Zhou Ni]

Hey everyone my name is joe, i am 29 years old married with 2 kids. We brought our first house couple years ago, the house was build in the 70s with 0 updates so we got a good deal for it. Put about 60k in it to fix up. We are looking to buy our first rental property, so my question for you 1 should we get a appraisal on the house and take out a home equity loan, 2 since its our first rental should we buy one that is ready to move in, a fix upper?

[Matt Crusinberry]

@Zhou Ni, I assume you have read other articles/blogs/forums, in regards to turn-key verse fixer upper, that there will be other factors that are going to be very specific to you. My suggestion is once you have run your numbers on the added value in your home (i.e. your potential HELOC) and the extra cost you'll be paying, what will the property need to produce so you don't put yourself in a bad position. The majority of the time turn-key is going to cost you more; however, on the opposite end of the spectrum it's going to save you time and some heart ache. I would try to figure out all the pro's and con's that are specific to you and just conduct research on both. This research would include contacting a turn-key distributor and potential properties that you can BRRRR (or any strategy that supports your goals). I hope this helps, and good luck!