All Help Is Appreciated
Would like to start rehabbing. I currently own my own home but am making payments to the bank. My debt ratio is a little higher than I would like but I own another property that is maxed out on its equity. I have excellent credit. I can obtain 5 to 10 thousand cash. What is the best way to start in rehabbing. How to pick the right house how to get financed and what to look for and what to stay away from. All help is appreciated.
Thats an awful BIG question. I would suggest that you read through previous posts in this forum for starters. Not knowing your qualifications as a handyman its hard to say what the right house is for you. Since you are asking such a general question i think hiring a ggod home inspector might be well worth the money since you will know what repairs will be needed before you purchase. I do all inspections myself unless I see potential structural problems, then I hire a structural engineer for a proferssional opinion.
I would suggest that you stay away from anything built before 1950 until you gain a little more experiance.
The best thing you can do is spend the time doing your due diligence and once you think you have a propertry that has the potential to turn a profit just DO IT !
Sounds like you need ot start at the beginning. Read all the posts here you can and do a search on www.half.com or www.amazon.com for books using keywords rehab or flipping. There are a couple of books with names along the lines of fix it, flip it, profit etc...
Thanks for the ideas. What about knowing the FMV does that just come with experience or is there a formula to it?
Comps, comps, comps...look at recently sold propertiesin the area that are similar to the house your considering buying. Thats what an appraiser or real estate agent would do. Of course you can always hire and pay for an appraiser if your unsure, but that can get very costly.