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Updated 5 months ago,

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Zane Hernandez
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New investor needing financial advice.

Zane Hernandez
Posted

Hi everyone. I'm relatively new to investing and need some help with my unconventional situation.

First off, I'll give some background about myself.

I Live in British Columbia and have been a homeowner for about 8 years. my house was appraised at the beginning of last year for $550,000 and still owe $120,000. I've been building a 1 bedroom carriage house on the property in my spare time for the last few years which my wife and I plan to move into in the next few months so we can rent out the house. The partially built carriage house wasn't included in the appraisal. we also own a 1 acre property neighboring the house. Its appraised at $300,000 and we owe about $220,000. we are currently renting out that property as a rv pad to a friend of mine for $750.

I'm a ticketed carpenter with around 10 years of experience and make about $85,000 a year. I actually enjoy construction but I'm ready to be my own boss. I want to get more into real estate and want to start  BRRRing with new build single and multi family dwellings and I'm needing some guidance with some of the financials of it. 

So my question is, How Should I go about financing a new build with a construction loan, But still pay myself for the work I do? It seems crazy to pay income tax and interest on my wages, but having myself do the construction is still cheaper than hiring another contractor. Also how do I make it look like my company still makes money so the bank will lend to me later on? I'm definitely thinking of starting off with a conventional BRRR to get the hang of things but still have to somehow pay myself while doing the renos.

Maybe its a terrible idea but I'm really just looking to be able work for myself and slowly create a rental portfolio. 

Let me know if you guys have any ideas or input, I'm open to learning everything that I can.

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