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Updated almost 5 years ago,
Advice needed for buying second family home
Hello. I am new to the community. I have recently developed a strong interest in buying properties and flipping them and then renting them out for a profit. I have not done so yet because I have not had the money to invest and I am not handy. Here is my current situation:
- Married, father of four who has owned two cars (used) and one house (recently sold). I live in the Cleveland, Ohio area.
I work in tech sales and have had three jobs in the last two years. I was laid off from two, resigned from the other. I have a good job now that pays well and is flexible but may not be secure long term.
Due to being unemployed for several months after my last lay off and due to the bad situation that was our old house, I have sold that house just a month ago and we are living with my parents so that we can save $ and look for our next house. We did not make any money from the sale of our house, instead we lost $2K due to us foolishly trusting the inept realtor we were using.
The two used cars that I currently own are old and lacking in value so I will need to get another car soon, especially because I will be driving more for my new job. One is a 2010 Chrysler Town and Country with 115,000 that is in good-fair condition. We owe $6K on its loan. The other is a 2008 Toyota Highlander that has 175,000 miles on it and we we $2K on its loan.
Based off my current situation, could I please have some advice with answers to these questions?
- First, should I trade in a car now before we buy a new house? The one car is a minivan that has little trade in value. Due to its current state, it will not last longer than six months. Since I am in a position where I can save money, should I put money towards another car now before buying a new house?
- Second, due to there being an overall shortage of houses in the housing market in our area, we are going to need to wait to find something good. Our price range is $130,000-200,000. Is it better to buy a house that is on the high end of that range and not have to do any work or is it better to buy one on the low range and fix it up? ( new kitchen, adding square footage, facelift etc)
- Third, due to being in a situation where I can save money and be flexible with my time due to my job, what are the best steps that I can take now towards making money in real estate in the future? (Buying properties and renting/selling)?
My apologies for the long list, but any good advice that could be shared with me would help. I would be glad to answer any questions to help clarify my situation or reasoning. Thank you