Updated over 4 years ago on . Most recent reply
Rough Draft Plan (Advice or opinions)
Hello everyone,
My wife and I will be purchasing our first house soon, we want to build a portfolio of rental properties. I only recently started looking at bigger pockets and learning and reading about real estates. I find it fascinating and something I want to do. So my very rough plan is this:
Get a decent primary residence home in Indianapolis, around 140-160K in a decent neighborhood put a minimum down payment. Live here for 2 years build equity and save money then refinance and get cash out or home equity line of credit to fund a second home a investment rental property.
Step 2, I will get a distressed home at under market value and rehab it all the while living in this second house and renting out the first one. Step 3 rinse and repeat.
Do you guys think this is a sound idea at least from a broad steps view ? Is there anything inherently faulty in that plan ?
Also a big question on my mind, is it worth it to get a distressed house in the ghetto like a small one and fix it up to rent or is it better to get a moderately priced house that is in distressed in a decent part of town and invest in that instead even if it will cost a little more.
Thank you and I look forward to your advices or opinions.