21 year old with paid off house looking to invest

[Noah Worley]

Hello all. I have question for some more experienced minds. To start off, I am not new to the game, my father was an experienced flipper and he figured out how to BRRR himself before YouTube was really a thing. He passed away when I was 16 and left me a paid off mobile home. Once I finish renovations it will be worth 175k bare minimum

My question: what is the best way to start from here? I thought about doing a cash out refinance and using that to buy another property that needs work. I also thought about just taking out an FHA loan (since my wife and I both have 750 credit scores) and buying a house and renting out my mobile home to cover the mortgage. Then just building equity for a while until I can move again and use another fha loan. I'm basically just getting stuck on logistics. I don't want to assume too much risk, but I also want to have at least 8 houses by the time I'm 30. I'm very passionate about real estate and I cannot wait to quit my W2 and do this full time

Looking for some like minded people who have been in the game longer than me, not just keyboard warriors. Thanks guys. 

[Jason Wray]

Noa,

You can do a cash out refinance where you will be maxed at 80% LTV so around $140K based on the $175K value. That cash could spread out over 3-4 new rental properties with a 15% down model and homes around $200K. Just want to make sure the market rents support the new purchase PITI payment. Rents greater than the PITI payment and if you can focus on 2-4 units the multiple doors help achieve that goal.

On another note keep in mind Mobile/manufactured can be tough to refinance some lenders do not fund on them. The main guide lines focus on it being on a permanent foundation (Concrete slab), Hurricane tie-downs if you are in FL, GA, LA and a few other states, must be a double wide and not moved from another location. Some lenders require it be built before June 1976 and some require it to be less than 20 years old.

Just be ready for the lender to order a foundation inspection report and appraisal - both you pay out of pocket.  If all of those apply it makes sense to pull cash out and buy more properties.

[Andrew Syrios]

You're off to a great start! I still house hacking from one property to the next is the best way to go. Take advantage of those FHA or homeowner occupant loans.

[Jackson Harris]

I think your long term hold goal is a great mindset, I would be shooting for that goal of owning a few properties by the time you're 30.

As for what to do next, I would recommend a cash out refinance as long as the rent on the mobile home would cover the payment. Then take that and invest in a few different properties or 1-2 small multifamily properties. If your wife is comfortable living close to other tenants you can get some low down payment loans and have the tenants cover most if not all of the mortgage.