Access to New Funding

[Account Closed]

Hey everyone,

I have access to a $25,000 loan at 2.99% interest that I do not have to begin repaying for 18 months and it must be repaid in five years once payments start. I have two friends with the same circumstance. Together we would have $75,000 that we do not have to make any payments on for 18 months.

I have been looking at and studying real estate for a long time and I see this as an opportunity to finally start investing. We want to do BRRRR with a property, ideally we would create enough equity that we would be able to get back our entire $75,000 investment along with creating cashflow.

What do you guys think? I know that it is a lot of leverage. I am in Portland Oregon so we definitely would not be able to do it here, the market is way too expensive. We would like to retain the property though, we do not want to flip it and sell it. Thank you for any advice or suggestions that you guys have!

[Ryan Ingram]

I have a portfolio full of around 40 properties purchased at 25,000. My average purchase price is 28,000 and the average rent is $700. 

Most of the properties needed to rehab at the time of acquisition. Though, there have been small maintenance issues on some.

These properties are not in bad areas. My residents are nurses, teachers (I have one PhD resident), and both military and civilian employees of the local base.

@Account Closed, I moved to Dayton in April if 2017. Before that, I lived in the Raleigh/Durham area where you can’t even buy a condemned home for less than $100,000. I would’ve had the exact same response. 

After 2 years of investing in Dayton, everything I thought I knew about real estate got a make over.

You’re in a strong position with that money. Great job for getting on here and seeking wisdom on how to utilize it.