Getting funds for repairs on a rental
I would like to pick everybody's brain for a moment. I have had a thought about borrowing private money for both the purchase and future repair costs of a rental. I have found that I always had to wholesale and stock up cash and then put it away for the rental repairs. The challenge is that I did not always have the funds to do this whenever I found a good prospective rental property. I thought it would be ideal to partner with a private investor to borrow from for the home purchase, the home renovation, and the future home repairs. Let me know what you all think. I would love to get your input.
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So you want to borrow money and pay interest on that money for future repairs? I can't think of a reason why you would do this and can't imagine why you would buy a property that does not cash flow so you can save some of that income for future repairs. Do you not keep a certain amount of reserves on-hand at all times for unexpected repairs?
Sorry, I guess I'm just a little confused as to why you would have to, or want to, borrow money for future repairs. If you're buying properties with negative cash flow or spending all of the cash flow (even if it's on other properties) then you are setting yourself up to get burned.
Cheers.
Eric