All Forum Posts by: John Matthew Johnston

Thanks for the replies everyone- have a great Labor Day!!!!

So

I'm actually going to turn the 4 BR 2B into a sober house for recovering drug addicts/alcoholics - I will have 8 tenants paying 400.00/month. Do I will be holding

I need advice on the best way to use my funds. I currently am eligible to take out a HELOC on my primary residence- Ive been approved for $70,000. In the next few weeks I will be obtaining $25,000 from an inheritance. Ive put an offer on a SFR at $16,000 which will probably be accepted. The house needs ballpark $25,000 work. My real question is how should I use the inheritance of 25,000. Should I put it towards the HELOC I'm taking out? Should I take out a smaller loan and use the 25,000 as fix up money? Should I put it towards my Primary Loan on my Primary residence or keep it liquid for unforeseen repairs or when I purchase my next rental/flip? Im sorry for the weird question I have been reading a lot about leveraging money and because its my first deal, would like to make the best choices. Thank you Bigger Pockets.

                                                                John J

Hi I am a new investor in the Pittsburgh area and I am very interested in opening a recovery house. My question was is their special insurance I would have to acquire or can I just get a basic umbrella policy for the house. I do know that drug addicts and alcoholics are covered under the America disabilities act so I would think a basic policy would suffice. Also any advise about opening up a recovery home would greatly be appreciated. Thanks Bigger Pockets! I'm learning a lot!