First timer question

[Brandy Horkey]

I am looking to do my first BRRRR but I have a strange situation so I am not sure which route to take.

I own a 3/2.5 condo just outside Universal Studios in Orlando. Originally, I was just going to sell it and buy a house outside of town. My bf has been asking me to be patient and hold off on buying another place for a little while and just live with him until I find what I want, which is fine but here is my quandry…

I can sell my condo and use that money to pick up another house, sure. BUT, I would rather pick up a rental. So I feel like I have 2 options. 

1. Keep my condo and pull out the cash. My mortgage is very low and I have just remodeled the kitchen and remaining upgrades will cost less than $5k. A refi would get me enough to pay off the existing mortgage and upgrades and leave me about $100k to invest in another property. The problem is that my HOA is so high that I will barely make any money off the rent. I will make money but not much.

2. I can sell my condo, and have more cash in hand so that I have more flexibility on what I can buy to fix up. I will be able to pick up something that throws more money my way and will allow me to get into a second house quickly. 

The first option gets me experience right out of the gate but I fear that with not much cash flow, it could hinder bank loans but I shouldn’t be showing any negative cash flow. And I could have 2 rentals with in 6 months 

The second option could potentially get me 2 rentals within 1 yr with better cash flow but now I don’t have any assets(my condo) to start. 

I’m sure I have left out a lot of details that will help but I would love to get some input on how I should handle this situation. 

Thanks!
 

[Brandy Horkey]

For sure!  I’m not totally new to real estate and I am aware of the stress and frustration that will be involved. I have a great set of resources around me willing to jump in on rehab quotes and work. This also isn’t something I just woke up and decided to do. I have wanted to do this for years and finally feel like I am in a place where it makes sense to jump in. 

I have this condo and while it wouldn’t take me in the red, it won’t get me very far ahead either. At least not for a few years on paper. I just simply wanted to see if a few folks would chime in and give me their thoughts. I will make mistakes and not so great decisions along the way but I want to minimize that as much as possible.