Being successful at rehabbing requires extensive experience in multiple different areas.I would rather recommend focusing on ways to build up some of your capital and learn to swim in the shallow water before you jump into the ocean.Wholesaling, birddogging, lease options, subject to's, contract for deeds, and owner financing are all ways to start with little or no capital.

I would also warn against a 1031 exchange and was wondering, why not live in one unit while you rent out the other units after conversion, then once 2 years is up, sell the unit you have been living in tax free up to 250k if you're single and then either move to the other units or even if you sell them at least you can tax advantage of capital gains since you've held them for more than 1 year.

In our case it seems that the kickoff was started by a guy who made it work and still has high occupancy :D Keep us posted and good luck.Mike Mitchell, Lubbock, TXINCREASE CAPITAL

I stand to save a lot , not only on interest, but also on fees, insurance, etc. that the mortgagor was charging the person from whom I bought the property.Thanks for any help.Mike MitchellLubbock, TXINCREASE CAPITAL

In addition, you better have an allowance for capital expenses even though these technically are not part of capital expenses.

there are many ways to raise capital - IF you're willing to do what it takes to get there.other investors will tell you that you can start with not ONE DIME in your pocket.

You will get to depreciate the property and then sell the property later for a capital gain.

In addition, you have capital expenses.

I found the multifamily unit and will be responsible for doing the conversion legwork, while he will supply the credit rating and the bulk of the capital.

Mike Mitchell, Lubbock, TXINCREASE CAPITAL