Posted by scottese on March 17, 2006 at 15:17:50:
I have just purchased a rehab in a resort area and it was a home run. I will net aprox 300k (a huge deal in my area)maybe more(appreciation), because I will be holding for a year and renting as a vacation rental to get long term cap gains.
I would like to pick up more rentals, but because I am still relatively young, I like to be as leveraged as possible. This money would go a long way for just downpayments, and much of it would be sitting idle because I usually cherry pick any long term properties. I would like to get into HM, as I am only 31 and can take the risk. I have been in CRE for 6 years and I’ve tried a lot of techniques (L/O, Sub 2, rehabs, landlording, holding paper,etc) but this HM really piques my interest. I figure I have a year to get ready and I would like to know the best way to learn the biz.
Based on the going rates in my area I will make about 30% annnually with points and interest…that sounds really nice. Plus, I do alot of rehabs, so if I take deed in lieu, I will still do fine.
Of course, like all things, this sounds to good to be true…What am I missing? Maybe I need a reality check!
I think I can angle this deal to get me to my ultimate goal of finacial independence so I can enjoy my children and actually raise them. They are now 6 mos and 2 yrs, but I know they’ll need alot of my time to become fine adults. I figure I’ve got 10 years…
Are there any good sources on the net, or books I should read?