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Updated almost 5 years ago,
Should I pursue this property or wait?
Hello, BP community! I am always on the website learning and researching, and I finally have a question so I decided it was time to make an account and engage with everyone!
Anyways I am graduating college this year, and I will start working right when I do. Currently I do not have very much money saved up at all (less than 2k). My uncle has had a property for years, and he knows how much I want to get into investing so he told me he will cut me a great deal when I am ready & able to start investing. So I have a couple thoughts going on in my head I was wondering if everyone could help me with.
I do not know the actual value of the home or how much he is going to sell me it for, but the first thing that comes to mind is to do the BRRRR method especially since its a fixer upper (nothing super crazy), using Hard money. However, my thought process is if I use hard money, once I fix it up and refinance it I will just have to pay the hard money lender back then I will be back to square 1 with no money. I know I will have a property, that is cash flowing $200 a month atleast (hypothetically speaking), but if I want to invest in another property I will just be using HML again?
Second thought, is just starting at my job, and saving like crazy then use my own money. However, even if the house is only 80k that will take a very long time to pay for, and if I plan on doing the BRRRR strategy that means I would be paying the full cost of the house before taking out a loan. Right?
I know I have a lot to learn, and I hope everything I said makes sense. With all that being said, what steps would you take with this opportunity?