All Forum Posts by: Jonathan Studdard

Mizzou is in Columbia, but it is a party city, so I'd be careful of who you rent to. Lindenwood University in St.Charles is expanding.

@Joe Villeneuve Thanks for the advice. How many properties in this area would you estimate it to take to achieve this? How much would you estimate the cost of acquisition to be for each property, and for which costs (DP, rehab cost, etc) would you recommend using borrowed cash versus my own cash?  

I am drawn to flipping because it is a process that I can repeat and improve. It seems that if the numbers for a flip work, then they work and it comes down to staying close to budget, and being able to sell it. I like the concept of the cash coming back pretty quickly if I use my own, but I don't like using more than half of my cash. Many people seem to think using my own money is dumb with this strategy and that I should approach REO in general as if I didn't have the cash I do. What is most frustrating is that the puzzle piece of financing seems to be far from a one-size-fits-all solution. I just feel that having more cash than most first-time flippers or investors can give me an advantage I'm not seeing. Fortunately I'm in no rush. Thanks for your advice!

I am trying to put an ideal game plan together to begin my journey in REI. My goal is to use the cash I have to achieve enough cash flow to cover my living expenses within a couple years (if it's even possible). If I can achieve $5,000/month, then I will have financial freedom. I have about $100k I would be comfortable using, which would leave me more than that in reserve for a rainy day. I don't have a handy "DIY" bone in my body, but I have cash and I know a lot of people in the blue collar fields of construction, etc. I also have a couple close, like-minded friends who don't have as much cash, but want to get into REI as well. I know that a rental portfolio generating cash flow of $5k/month does not happen overnight, and I fear that I lack the cash to really achieve this before I would run out of capital. This has led me to conclude that I would have to make some money through some flipping along the way to supplement my working capital. Is starting out flipping my best bet? Or is it possible (using more of my cash) to purchase an existing rental portfolio (I have 0 actual experience) that would cash flow this much off the bat? Luckily I'm in no rush, but I don't want to see my money dwindle away to inflation or burning a hole in the wife's pocket. ;)

I am drawn to flipping because it is a process that I can repeat and improve. It seems that if the numbers for a flip work, then they work and it comes down to staying close to budget, and being able to sell it. I like the concept of the cash coming back pretty quickly if I use my own, but I don't like using more than half of my cash. Many people seem to think using my own money is dumb with this strategy and that I should approach REO in general as if I didn't have the cash I do. What is most frustrating is that the puzzle piece of financing seems to be far from a one-size-fits-all solution. I just feel that having more cash than most first-time flippers or investors can give me an advantage I'm not seeing. Fortunately I'm in no rush. Thanks for your advice!

I think I'm with you. It seems that if the numbers for a flip work, then they work and it comes down to staying close to budget, and being able to sell it. As long as I can afford to hold the property if it doesn't sell or even rent it if needed, then it seems the cash will come back pretty quickly. However, far too many people seem to think using my own money is dumb with this strategy. But it seems if a deal goes south, I'm in just as bad of a boat either way. Luckily I'm in no rush. 

I am certainly going to look into it. Thanks for the advice.

 trying to customize the best strategy for my first flip given my situation.  I've gotten a ton of useful info from BP and this is where I'm currently at. My credit is in the mid-to-high 600's. I have enough cash to put a down payment on a mid-sized single family home, as well as cover the cost of a whole home remodel if I needed to, but I'd be using a lot of my own cash doing both, an idea we aren't too fond of. I own my home, but don't have much equity in it yet and paying off my mortgage would require most of my cash, so I've ruled that out for now. Where can using cash save me the most money or give me the most profit? Should I try to go for more of a fixer-upper and use more cash for a better rehab? Or would it be better to put more down on a property, etc?  

 trying to customize the best strategy for my first flip given my situation.  I've gotten a ton of useful info from BP and this is where I'm currently at. My credit is in the mid-to-high 600's. I have enough cash to put a down payment on a mid-sized single family home, as well as cover the cost of a whole home remodel if I needed to, but I'd be using a lot of my own cash doing both, an idea we aren't too fond of. I own my home, but don't have much equity in it yet and paying off my mortgage would require most of my cash, so I've ruled that out for now. Where can using cash save me the most money or give me the most profit? Should I try to go for more of a fixer-upper and use more cash for a better rehab? Or would it be better to put more down on a property, etc?  

I'm trying to customize the best strategy for my first flip given my situation.  I've gotten a ton of useful info from BP and this is where I'm currently at. My credit is in the mid-to-high 600's. I have enough cash to put a down payment on a mid-sized single family home, as well as cover the cost of a whole home remodel if I needed to, but I'd be using a lot of my own cash doing both, an idea we aren't too fond of. I own my home, but don't have much equity in it yet and paying off my mortgage would require most of my cash, so I've ruled that out for now. Where can using cash save me the most money or give me the most profit? Should I try to go for more of a fixer-upper and use more cash for a better rehab? Or would it be better to put more down on a property, etc?