Hi everyone,
I am new to BP and new to RE investing. I have a home in Hawaii which I purchased in November 2019 under the impression that it would be my forever home (RE investing wasn't something I knew about). Purchased my home for $660k (on paper) but after all the closing costs it was $710k. Home was appraised at $730k upon purchase. I put down $215k, plus $90k additional rehab costs. My loan was for $445k. ARV should be $830k-$850k. I owe $433k conventional mortgage and $40k HELOC.. phewww!
If I cash out refinance, I would only have access to about $190k at 80% appraisal value. My boyfriend and I have about $50k cash reserve. He has no properties.
I’m looking to purchase in Summerlin/Henderson Las Vegas. My goal is to have multiple properties (of course) but I’m not sure how to start without getting tied up in my first investment. The issue is I’m trying to purchase a condo for my mom to live in (she has no retirement and lives off social security) so I would take a loss if I buy her a condo (right now).
There’s a condo that I’m interested in located in Henderson. 1 bdrm, 1 bath, $140k, little to no rehab cost, rent could be around $1000. From the BP calculator, I would break even. If I buy it for my mom, I would have to pay $500 a month. It’s the only property that I found that I can afford right now and I don’t want to be stuck in analysis paralysis forever!
However, if I buy this property (either to rent or for my mom) with no cash flow, I wouldn’t qualify for another loan to purchase a third investment because of my debt to income ratio. I need advice, help, direction, anything anyone could offer.
I am determined, I work 8 hours at my regular job then 8 hours a night dedicated to learn and educate myself on RE investing. I will do whatever it takes to succeed at this, I just need direction.
I’d appreciate any advice, direction, or anything you all have to say.
Thank you in advance!!