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Updated over 5 years ago,
As an investor, how would you do this?
I just sold the house I'm living in for a large profit. Because I lived there for 2 years, I avoided paying capital gains tax on it.
I found another house that needs updating that I want to live in for 2 years then sell like the last one.
I am paying $350k for it. It needs $100k in repairs/updates.
Which of these would you do?
A) Pay $350k cash, do repairs only for $50k cash, then get a mortgage (For around $400-$500k) and do remaining updates over the next 2 years?
B) Pay $350k cash, do all repairs and updates for $100k cash (which is all of your liquid funds), then get a mortgage on the full ARV ($500-$600k)?
C) Pay $350k cash, get a mortgage (for $350k),then do $100k in repairs/updates?
D) Pay $350k cash, get a home equity loan for repairs/updates for $100k?
I would like to use some of my cash for purchasing houses using the BRRRR method, and other investments in the meantime. My goals are to grow my wealth and portfolio as fast as possible. I want to do this full time.