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Updated almost 9 years ago on . Most recent reply

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Derek A.
  • Mount Vernon, IL
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Cash out rental property ideas for student with no income?

Derek A.
  • Mount Vernon, IL
Posted

I have recently purchased my first rental property. I purchased the property and did some minor repairs all in cash so I own the property outright. The property is held under an LLC. I have recently placed a tenant in the unit and collecting $550 per month in rent (Section 8). I am in the property for a total of $15,000 so the roi is pretty good. The property is cash flowing enough to cover a mortgage and still provide excess cash flow. My question is how should I go about finding a lending source to cash out this property and reinvest the proceeds into another rental. My concerns are conventional lenders will want 2 years of verifiable income which is not possible as I am a student without a job. My other concern is if private lenders will want to deal with a property that will most likely appraise for less than $25,000. Any suggestions or advice would be greatly appreciated.

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