What can I do with my profits from my investment property?

Question

Thank you for reading, My question is fairly simple. I have 1 single family home 3 bedroom 2 bath, it was my home growing up and it was left to me after my father passed. I cleaned it up and had it painted, my Father had a lot of work done to it before he passed so it was in pretty good condition. Older home but good bones. I payed off the home and own it out right, no mortgage. It currently brings me 2k in rent a month. After property taxes, school taxes, insurance etcetera I'm left with roughly 15-16 maybe 17k at the end of the year. What can I do, real estate investment related, with that much/little? I am currently not working, so I am aware that I do not qualify for some HELOCs and other loans and lines of credit, even though I have monthly income from the rental. I've tried to do a refi and use that cash but I don't have a "conventional" job and haven't found anyone willing to use my rental profits as income. So what is possible with that much money in REI? Thanks again for reading.

L. Lee

Nathan Gesner · Answer

Why change anything? $2,000 a month is pretty good income. If you don't need to live off it, save it up and you'll have money for a downpayment in a couple years. Rinse and repeat.

Luke Edward · Answer

Hi John, thanks for replying. I will definitely do that for sure! Thanks you

Luke Edward · Answer

Thank you for the reply! Frankly, I don’t want to wait 2 or 3 years to make my next move in REI and even though it’s not an extremely large amount of money, I feel that it is enough to do something with, if that something was a good idea/investment. I’m just unsure on what my options would be related to REI with that amount.

John Brodeur · Answer

Hi Luke, I would check out asset based lenders / non-traditional lenders (non-banks, many of these companies offer non-conforming loans that are solely based on the asset that they are lending against (the property). They look at the profitability NOI and Debt Service Coverage Ratio and Market Value of the home to determine what they could lend against it, vs. your income. I am currently working with one on a refinance.

I would check out the https://www.biggerpockets.com/loans section and do some research / review potential lenders there to see which ones lend in your state, and might work for you. Then I would suggest calling 3 to 5 to get quotes on what they would lend.

Good Luck on your continued journey in real estate investing!

What can I do with my profits from my investment property?

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