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Updated over 9 years ago, 04/03/2015
New User - Georgia (North Atlanta Metro and North Georgia)
I'm Jeff Stone. I live and have some properties in north Georgia.
I own a large parcel of raw land which I bought from a bank (no specific plans for it yet) and a rental property in a college town (which currently houses one of my own kids going to school there because buying a small house turns out to be a lower monthly cost than room & board at the university).
So, counting my primary residence, I own 3 properties -- but can't really consider myself an "investor" because I haven't made a dime on any of them.
I'm interested in figuring out a way to do buy-and-hold rental properties to start building a cash-flow cushion to back up my day job. I'm a good carpenter and handyman and would love to do flips, but skeptical that I could do a good job at that and my 60-hour a week day job at the same time.
Happy to be here. And yes, I'll scrape up a profile picture soon... :-)
If you have equity in any of the property, you can take the equity out and use that money to buy a REAL rental property.
Pros of rental property vs flipping houses:
1. Less time consuming-You can outsource much of the day to day work to a management team.
2. Build up equity in this property and you can do another rental all over.
3. Appreciation in house can be taken out through equity or when u sell it
Cons of rental property vs flipping houses:
1. Slower return- You can get the same amount of money faster with flipping
Welcome to BP! This is a really collaborative environment. Please reach out with any questions if we can help you.
Welcome to BP! @Jeff Stone
I would consider the money you are saving on your college child's room and board earned money. Not cashflow, but it's there. Have you considered house hacking for your kid? Can be the start of your cashflow and when your kid graduates, you can replace them with a rent-paying student or you can sell the house and get the return college room and board does not provide.
Best wishes,
Pyrrha
Thanks for the advice @Pyrrha Rivers.
Originally posted by @STEPHEN YUAN:
If you have equity in any of the property, you can take the equity out and use that money to buy a REAL rental property.
Thanks Stephen.
Is there a way to use the equity as a sort of collateral on a loan for additional purchases or would I have to actually pull the equity out first (e.g., cash out re-fi, HELOC)?
I think you ARE an investor already and perhaps before venturing into additional properties you may do well concentrating on making those minor repairs and getting a non-family renter in. Does your college kid have some leadership skills and personality to live with others? If so, the renter will pay for the rehab and get you on your way to owning more. Your kid stands to learn valuable life skills as well, but they must have the personality and be willing to take this on. If not they're likely to resent it and you better wait until they're finished.
@Jeff Stone, welcome to BP...It is always good to see people from North side of the Atlanta. That is where our office is located. Need anything, let me know
Hi and welcome to BiggerPockets! It’s a great place to learn more about investing and meet the people you want to meet. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing and don't forget to set up your Keyword Alerts!
Having positive cash flow is not what determines whether you are an investor or not, but it helps with the feeling of it. Making money eventually will determine if you a successful investor. All best in your REI ventures.
Welcome to BP @Jeff Stone! I agree with @Larry Fried. IMHO owning ANY property outside of your primary residence makes you an investor, although not necessarily a good one :).
Hello, my name is Jai. I'm new to the community and really interested in flipping houses as well as wholesale. Let's network or just add me as a friend. Help is greatly appreciated
I have not heard of using equity as collateral. You need to go through either cash out refi or the HELOC route.
House hack sounds like a good starting point too. Maybe you can try yard hack by building a tiny house in the back yard. Check this out:https://www.youtube.com/watch?v=RSzgh3D7-Q0
Originally posted by @STEPHEN YUAN:
I have not heard of using equity as collateral. You need to go through either cash out refi or the HELOC route.
House hack sounds like a good starting point too. Maybe you can try yard hack by building a tiny house in the back yard. Check this out:https://www.youtube.com/watch?v=RSzgh3D7-Q0
Hi @STEPHEN YUAN
I like how you think. I had actually been thinking about a tiny house (not necessarily a mobile version though -- I'll have to revisit that). The current house is only ~850 sq ft and it is on a full 1 acre rural lot with no garage or other outbuildings, so I think getting permitted for another structure would be easy enough).
A tiny 1-bedroom / 1-bath place probably goes against conventional wisdom for a rental house, but the place has mountain views and I think something like this might be able to attract a good renter, even with the small size:
http://www.houseplans.com/plan/262-square-feet-1-b...
I should probably just be focused on renting the main house and stop the daydreaming about the cool tiny house for now though. :-)
Thanks!
jeff stone
How much would you pay to rent a tiny house that you like on airbnb.com or some other vacation rental sites?
My girlfriend asked me that question and my answer was $100/day for the one I showed u...even though I know it only cost like 23k to build it. The fact that someone's offering a tiny house on airbnb is reason enough for me to shell out $100 to have the experience.
It's a growing market and people are interested in it.
Check out the new bp
Tesla Model S was renting like $650 a day a year ago on p2p car lending sites like relayrides.com in the bay area.
Maybe there's economics behind you getting your Tiny House.
Jackpot.
People are renting out their tiny house from$50-$175.
http://tinyhousevacations.com/