Posted by Terry (Houston) on March 26, 2001 at 10:07:59:
Man yeah Listen to Phil,
The refi costs alone will eat up your profits by doing that.
Read this site over and over and learn that you can do it with other peoples money!
Trying to build a cash flow… looking for help - Posted by Just Starting
Posted by Just Starting on March 26, 2001 at 07:33:33:
I am considering relocating in a couple years to south florida. Right now I only own my own home. I am considering purchasing some rental properities and starting to get a positive cash flow.
Here is my plan. I have $70k cash. I was going to purchase outright a condo valued at little more than $70k; you know the best deal I could find in that range; then I would move to take money out of that condo and purchase another… I would then continue with this plan.
Is this a good plan or should I consider doing something else with these funds.
Re: Trying to build a cash flow… - Posted by George(OH)
Posted by "]George(OH) on March 26, 2001 at 13:04:59:
If I were you, I would look at the mobile home forum and the cash flow forum.
Buying a mobile home for say, $1200, then selling it for around $3000-$4000, with YOU financing the deal, is a great way to create cash flow.
I’m not too familiar with notes/paper, but if you have cash to invest (and NOT your entire 70K, like Phil said), you might want to consider going this route. Example: You pay $20000 now, for the right to collect $35000 over time.
This is a better return on your money than letting it sit in the bank.
George(OH)
No No No - Posted by phil fernandez
Posted by phil fernandez on March 26, 2001 at 08:25:31:
Don’t plunk down your entire $70,000 on one deal. Once you do that you have tied up all of your working capital. As Terry Vaughn says, " cash goes into equity 100%, but does not come back out as cash at 100%."
Use your $70,000 very sparingly. You could buy perhaps 20 houses with your $70,000. In fact if you stick around this site you will find ways to get into properties with absolutely none of your money involved. Educate yourself at this point. Please don’t plunk down your $70,000 like you suggest. Ouch .