Hello BP enthusiasts...My first two flips were successful, but like most, raising capital is a challenge. 

I would recommend learning about raising money legally and Partnerships.   

Normally, I would absolutely run away from this deal because of the negative cash flow, but I foresee the Austin market continuing to boom and I could potentially raise the rental rates over time and generate positive cash flow.

. -- I believe I would only be making payments if I had pulled money out from the line (its an LOC, not a loan)  Otherwise it's just considered a big credit card, with no debt on it.

When our neighborhoods are deteriorating or just plain unsightly with overgrown weeds, cracked sidewalks and chipping paint, it's deeply satisfying to buy these run down eyesores and turn them into beautiful productive homes that people can be proud to raise their family in.

@Marcia MaynardThanks, yeah I just want them out because they pay 650/month where as I can get 900.So if they are on month to month lease, I can raise the rent.

If I'm reading this correctly, even if you were to raise the rents $200 on each unit, you're still ~$900 in the hole each month?

I probably won’t raise the rent on her for a while.

( which you can find out either from a realtor or an appraiser ( i would trust the appraiser more). so if the cost of work does not add a lot more to the NOI to raise the value past what you are spending, then it's not worth doing, unless you can predict the future and know that the value of the property will appreciate in that area and you can make money on the back end when you sell.

I used it and did well, although I wasn't raised with good study habits.