Today’s first caller has a $160,000 home equity line of credit, and he’s wondering how many new construction rental properties he can buy. On this episode of Investing in Real Estate, I’m answering this question and more of your great investing questions from my inbox.
This episode covers topics like buying newly built rental properties, how to ensure your seller financing deal is solid, and how to grow your portfolio after you’ve secured your first house hacking deal. Press play to hear my answers to your questions!
On this episode you’ll learn:
- How to determine how many new construction rental properties you can buy
- What you need to know about seller financing
- How to grow your portfolio after house hacking
- And more!
How to Determine How Many New Construction Rental Properties You Can Buy
At Morris Invest, we encourage our investors to utilize these historically low interest rates. Currently, a down payment on a single-family home is around $40,000 and a down payment on a duplex is around $70k.
What You Need to Know About Seller Financing
Seller financing can be confusing the first time you do it, simply because there is no realtor involved to guide you through the process. I’ve done hundreds of these deals, and can assure you that the process isn’t that intimidating after the first deal!
The first thing I would suggest doing is calling a local title company. They can help you get a purchase agreement in place, handle the transfer of funds, and more. If you’re buying with cash, the process is extremely simple. If there’s financing involved, you’ll want to contact a local bank to set up an appraisal and inspection.
How to Grow Your Portfolio After House Hacking
If you’ve been house hacking for a while, there’s a good chance that you’ve got some equity available to use! Not only have you and your tenants been paying down your mortgage, but chances are that your property has appreciated over the past few years. Contact your local banks to see if they can approve you for a home equity line of credit or a cash out refinance. Using the equity in your first property to buy the second is an excellent strategy!
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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