Housing investor journey

[YA BOY]

Whats up fam, I appreciate all the tips on my last treads. I am about to buy my first foreclosure tomorrow. It is a 3/2 3 side brick. Now it is in bankhead but in a place where a lot of homes are being flipped and basically gentrified.

A few questions I would like to get your insight on.

1. This home I bought was real cheap and I am going to use this asset to pay off student loan and car loan. Do you think that is wise? W/ the rate I get I will automatically get cashflow of 500 bucks. My reasoning is that I can get some better tax breaks on doing it this way plus my car depreciates and homes typically go up.

2. Does anybody know any hard money loan lenders who dont check credit?

3. I am going to use some of these cheap homes w/ decent values to grab other investments. For people who have been doing this for a while what do you think?

All comments are appreciated, I am compiling a list of things I am learning and will make one big post on it soon.

Thanks,

 

[CybaCipha]

My answers in red below

Whats up fam, I appreciate all the tips on my last treads. I am about to buy my first foreclosure tomorrow. It is a 3/2 3 side brick. Now it is in bankhead but in a place where a lot of homes are being flipped and basically gentrified.

A few questions I would like to get your insight on.

1. This home I bought was real cheap and I am going to use this asset to pay off student loan and car loan. Do you think that is wise? W/ the rate I get I will automatically get cashflow of 500 bucks. My reasoning is that I can get some better tax breaks on doing it this way plus my car depreciates and homes typically go up.

I don't understand your question... do you mean you are going to flip it then pay your shit off? When you say cashflow does that mean you will / will not be living in one of the apartments? More information needed.

No matter what you do, since its your first one, put the cash flow into a separate bank account for at least a year while you learn the finer points of managing your rental property and your tenants.

Learn all you can about being a landlord. After the first year hire a management company to deal with the headache for 6% - 20% depending on your area and the services they provide.

2. Does anybody know any hard money loan lenders who dont check credit?
There are plenty of Hard money lenders out there. Many are regional or localized. Just about all of them require you to have an LLC this way they get around cheking your personal credit. FYI ... many will require you to co-sign or they will charge you more points.

Hard money is usually short term money ... what is your exit strategy? Will you flip the property? Will you get a conventional mortgage to cover the hard money loan? If you do hard money your 500/mo cash flow is out the window unless you pay the points up front.


3. I am going to use some of these cheap homes w/ decent values to grab other investments. For people who have been doing this for a while what do you think?

That is the American dream son! do you!

All comments are appreciated, I am compiling a list of things I am learning and will make one big post on it soon.

Thanks,