WW-YOU-D?
You’re 41
Live in South Houston
Married with 8 & 9 y/o boys.
Work shift work at a chemical refinery making ~$120k/year.
Started a side Business that will Allow you to quit refinery job after a year or two.
The wife makes $70k/year.
Currently own one duplex with $650/cash flow and ~$80k equity. Loan @$165k
Own primary residence with $150k equity.
Loan @ $300k
401k = ~ $440k
You’re willing to cash out 401k, and after taxes and 10% penalty you should have ~$260k. (You have to quit job to cash out 401k)
You’re not interested in keeping money in 401k and going the real estate route with IRAs or other options.
You’re wife has her own 401k which will be left untouched.
You want to BRRR, but are concerned with the ability to refinance without an official job.
You’re side business income won’t likely be enough to satisfy the banks debt to income ratio for at least for a year or two.
Flipping seems to be your obvious choice, but you have no experience or mentor. Currently looking for mentor now.
You’re goal is to buy & rehab with cash. Flip about 3x / year and make enough to sustain your current lifestyle.
Maybe $60k+/ year profit from flips.
Planing on get real estate license this year and setting up an LLC.
Not sure if the RE license is necessary.
Not sure best type of LLC for flipping and BRRR.
May explore Galveston County auctions for better deals.
Do y’all like this plan and if so how would you modify it?
If there are serious flaws, WWYD to correct them?
Would you go about it completely different?
WWYD?
