18 YEARS OLD, and I need help Navigating through my first deal.

[Account Closed]

Hey guys! First off, thanks for clicking on this discussion. All feedback is greatly appreciated! This PAID OFF  property was given to me by my grandmother once she got her new house. 

• MY ASSETS
• My father is a Guru when it comes to anything having to do with construction. electric, framing, plumbing, painting, roofing, ANYTHING. I've been showing him BP In-order to open his eyes to the 80/20 rule so that he can learn to delegate jobs instead of trying to be a one man crew. 
• My grandfather currently operates an interior designing company that has been established for years.  
•  My grandmother operates a small home cleaning business and a Carpet & Upholstery protection service.

My family has had all the puzzle pieces laying around for years but nobody decided to put them together ..until now (:  ALL THANKS TO BIGGER POCKETS!!!

• PROPERTY INFO
• Single family
• Built in 1964
• 1,328 SqFt
• 3 bedroom / 2 bath
• Beautiful lawn "My grandma loved gardening"
• Carport that fits 2 vehicles
• ZESTIMATE $118,524   COST OF LIVING IN WEST TEXAS IS EXPENSIVE!

What needs to be done...

As of right now this property needs some work in order to get it into proper rental condition.

• CENTRAL AIR ( I'd like to get rid of all window units )
• REPAINT ( to a more neutral color, another words NOT PINK )
• REHAB ONE OF THE BATHROOMS COMPLETELY ( Average size restroom )

I would like to do a cash out refinance on this property and take out 80% of the appraisal value in order to cover expenses for the updates to the property and to have some capital to invest in another single family home or possibly get into flipping with my family.

Again i'd really appreciate feedback! I just want to make sure i go about this the right way. 

THANKS BIGGERPOCKETS FAMILY :D

[Robert Herrera]

@Account Closed Welcome to BP. You are WAY ahead of the game, since you already own the house free and clear. It is a great idea to do a cash out refi as it is tax free money, that will make you rich. It is tax free because you don't pay taxes on a loan. 

Once you rent this out, you will be one step closer to being financially free. I'm not sure of your expenses in life, but this house could help cover you biggest expense, your personal home rental costs. 

Great idea to put that cash out refi into other investments. 

Start reading more books. 

My favorite books: 

Rich Dad, Poor Dad

Richest Man in Babylon

Straight Path To Real Estate

On a side note, use the @ symbol followed by the name, to bring up the person you are trying to connect to. Click on their profile to tag them. 

Also, press the Vote button on useful info that will help others. 

Have a good day