I see a possible opportunity to build some equity, but this is my first rehab.

There is a lot to consider and my basic math on the income/expenses seems to show that I wont have an income from the property and all of my gain will be in equity.

Hi all.First let me introduce myself.My name is Victor, I have been living in the Austin area for 10 years now, originally from Spain.I bought my first home in Austin in 2009, and sold it for a good profit in 2013, when I married, to buy another home with my wife.Ever since, I have been wanting to invest some money in real state, mostly to avoid just having cash seating in the bank, and build some equity for the time when we retire.At different times we have looked at different types of properties, but for one reason or another we would just stop looking for a while and then start over again.Just a few months we started looking again, I wanted to find some investment property that provided some positive cash flow, but after talking with some friends, realtor, mortgage broker... it seemed that it could be better to find another property to move to, and rent our current home out, since we got it at a good price in 2013 and should get a good rent.Now, while looking for that, I found a house I thought had good potential with some renovations, and long story short, we ended up in a contract to purchase it.

In my market the cost of a general contractor willing to play ball with 203k is such that BRRRR will not work since you will not have sufficient equity after financing the cost of said general contractor. 

However I could do 10-20% down plus use (if possible) equity from a 500k value multi unit that I owe 225k on.

If you’re looking at buying larger multi-family, I would take your realtor hat off and deal directly with the listing broker with getting your commission. brokers want to “hog” the deal and will likely not favor you as much if your expecting a commission and competing against others.

hey Matthew - very good point. my Wife and i have been living in our current home for about 7 years. we have a decent amount of equity. we are looking at a new home as an upgrade and i have been tinkering with the idea of renting our current home out instead of selling it so we can build even more equity.the rental estimate versus what we pay per month would be tight; we wouldn't profit much. this is a concern.secondly, renting the current home eliminates any profit for a down payment for the new home. however, i do realize the direction you are recommending; "park" the "100k" in the new home and keep the current home as a rental property?

I also ask this based on the end investor, how much meat do you leave on the bone for them, as far as the equity between fair market value and agreed purchase of the note?

. ;-) Rates can be anywhere from 5 - 6.25If you need equity I can help you with that as well

Purchase price: $235,000 The current 11 Home SFR Bulk REO Portfolio is offered As-Is and has ALL BROKER PRICE OPINIONS and TITLE (O&E) Reports Included.Asking Price is $235,000 (OBO)Total BPO Valuation of the Portfolio is $392,800Based on BPOs Estimated Equity Gain Total at Purchase is $157,800 What made you interested in investing in this type of deal?