Updated over 9 years ago on . Most recent reply
Keeping Momentum
I recently finished rehabbing my first rental property in Northwest Indiana and we're expecting security deposit by the end of the week from our first tenant. Since this was my first project, it was a huge learning experience and took a long time. I used mostly credit cards and borrowed money for the purchase down payment and rehab cost, and now that we're finishing up I'm doing numbers on payback and the next property.
I want to keep up momentum and start the next project soon, but by my count, it will take me somewhere around 5-6 months to pay off all the debts I incurred in the process of purchasing and rehabbing the house (not including the mortgage). That includes any profit from the rents, as well as funneling any income I have available from my day job into debts.
I am very motivated to keep rolling and get started on the next one soon, but it's seeming a bit difficult when I look at the facts. Has anyone used strategies in similar situations to keep purchasing deals? Any past experience that could be applicable to my situation? I've been brainstorming for a while now and maybe it's just a natural aversion to risk, but it seems like the only option is to hold where I am and get back financial footing before moving on to the next purchase.
Any help is appreciated! Thanks!