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Updated 12 months ago on . Most recent reply

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Sole Angel
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What’s a minimum amount of money to start?

Sole Angel
Posted

Good morning! What’s the minimum amount of money that would be a good start to buying a $100,000 fix-and-rent property? With no debt and a 778 credit score.

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Nicholas L.
#3 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
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Nicholas L.
#3 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
Replied

what's purchase price, what are rehab costs, what are holding and financing costs?  do you have separate savings and emergency funds?  is this your first ever project?  do you already own, or do you rent?  have you talked to a lender?  do you have a property in mind?  where did the $100K come from?

if the property is $100K and the rehab is $60K you'll need 10-15% down plus closing costs plus holding costs - conservatively 16-24K + 5-10K + 6-12K = 30-45K at least

and you don't want that to be all your savings... so you'd need separate savings and emergency funds - i'd want 25-50K depending on situation, lifestyle, etc.

so 50-100K i guess

but that's just a horseshoes and hand grenade estimate

these types of questions are hard because we don't know much about you or your financial situation

  • Nicholas L.
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