Is it a smart idea investment to buy a SFH property with built in equity, make improvements to the home, and hold as a rental?

Is it a smart idea investment to buy a SFH property with built in equity, make improvements to the home, and hold as a rental?

Mortgage rates have increased in recent weeks, in the midst of the spring home buying season, as the economy has shown signs of improvement.

The best thing you can do is work to improve that score.

You need to define annual expected yield for your investment and how much headache you want ( active versus passive ).For example you can buy a very nice quad in an A,B area but not much cash flow there.

Putting them into an LLC might change the deductibility of the interest but it still depends on how much of the proceeds are used within the LLC versus distributed out.

Well worth a connection with him to help you get to where you will qualify for a loan versus the hard money route.

And where it further improves is the investor is getting in pre-value add, or pre ARV, so they get to share in the forced appreciation and, therefore, the upside.

Here is a link to a website that showcases a few of the improvements to our first investment property, A buy and hold we purchased back in late 2020 using our VA home loan.

I would recommend having a different LLC for your flipping business versus buy and hold rentals.