As of Thursday, after paying all bills, I am at $11,200 in total savings. I live at home. My father makes me pay rent, but he will give it back so I can use it as a down payment on property (about $3500). I have no real intentions of moving out. My credit score is reported as 737 by Transunion and 712 by Experian/Equifax. My income varies. If I work 40 hours a week I'll pull in $800. If I work Saturdays (which I do about 2-3 weeks out of the month) I'll pull in a little under $1,000 after tax.
I would like to buy a dumper house. When I was a young child, I had family who went in on a house, fixed it up, and churned it out within the same year. I don't know what they made, but I remember helping. And I'm guessing they made a decent return.
I invest most of my money. I ignore the rule about 'keeping an emergency fund' because I don't need it, and I disagree that I do need it. I can withdraw money from all accounts within 7 days so it's not like I need $10k in cash to be safe. I have about $6,000 in good Vanguard funds. I have $2,200 in lone, riskier stocks. I keep the remainder in several different accounts and buy/sell stocks if I think I can turn a quick profit, otherwise it's liquid.
But I'm after a different kind of investment this time around. After looking around, my state has a lot of crap houses for ~$80-100k. I found multiple that only really needed aesthetic improvements ie decrepit driveway, 1800s electrical system that could be upgraded, disgusting exterior, foreclosures, etc.
Would it be a worthwhile investment to buy one of these? Obviously I would need to do complex inspections of any property, in person, to insure I don't get myself into a big mess.
My plan of attack of a house would be the following: Get a short-term mortgage (10y) and pay ~$1,000-$1,200 a month. Use some liquid savings to improve the property, as well as putting in a ton of my own labor. I honestly would not want to live at the property 100%. I don't want large electric/water bills. I don't need to pay for all the dumb extras like internet/garbage/etc if I can just live at my dads house for free and use the house as a get away.
After I complete my renovations, I would like to either flip it, or ideally, rent it out. Get someone to pay me $800 a month while I continue working and let him pay off the majority of my mortgage while he owns nothing. Then, eventually sell the house.
Am I being to optimistic? Is this something that's not outside the abstract? I'm being very wary and cautious. I know I have a lot of capital for someone my age. I don't know where my life is going. All I know is that I just want to save money so I can eventually make money. Now that I've reached my ultimate goal of $10,000, I don't know what to do. I feel like I can very easily get a loan for something like this. And if that's the case, time is of the essence.
Submitted August 11, 2018 at 12:11PM by derghdfgh https://ift.tt/2vBZrD8
