To much hope? On 1st investment

[Carol Birnberg]

Ok thoughts- I can take constructive criticism .:)

So bought 1st property-since I had in mind to rent. The expected money invested is muuuuuuuch higher than expected. So now I’m planning to live there to fix without getting too much on a loan& Then Airbnb or long term rentals.

The question is the next house neighbor sold for 94k & is only 725 square ft & mine is 950 sq. Feet. Xtra bathroom . The question is live there? Or just flip. My purchase was 27. With tax and all closing cost.

I’m guessing if I stay I pay no rent for few months. & buy nice things for Airbnb. Is this a good idea?

[Brian Adzadi]

@Carol Birnberg

Why not do both? Live there for about a year while you are flipping. You have to remember, when you flip and sell it within less than a year, you will have to pay capital gains tax on it.

@Mindy Jensen does those kind of deals with her husband and kids, sucks but the profit margin is outstanding.

After you flip it, then you will have 2 choices. Option 1) Rent it out to a monthly paying tenant or Airbnb it. Personally, I would Airbnb if the area the property is in is a high tourist area. Also, if the property is a short distance from a university that has dorms, you can rent it out to students and charge per room so you can collect higher rent.

Option 2) If after the flip, the after repair value is significantly high, like 20K or more in equity, I would do a cash-out-refinance and buy another property that you can potentially do a Live-In-Flip again and just keep doing that until you reach a certain number of unit properties.

I am pretty sure some of our colleagues have a whole host of other ideas for you and hope they will chime in.