You find a house that looks like a sweet deal. $15k cash to purchase, $10k in repairs and its in the city of Detroit. Not the best area, but workable. The question you have to determine before pulling the trigger is, "how does this deal fit in with my business plan?"
This deal may be too good to pass up if you are planning on buying and holding it with intentions of renting it out. Rental rate may be $700/month and you may cash flow $300 after all is said and done. But is that how you are building your business?
Lets start at the beginning. Before you pull the trigger, you have to determine your exit strategy for that particular property. But even before you get to this specific deal, the first thing you need to do is determine what deals work best for your business. Are you truly looking to buy/hold/rent, or would you rather buy/fix/sell? Is your main investment strategy wholesale or is it lease option? These are the details that need to be determined before you start making offers on houses. Keep in mind, if you've already got offers out there and haven't thought about the overall picture - no worries! Its never too late to make your business plan.
Think about your current, personal situation. Are you strapped financially? Do you have a bunch of credit card debt holding you back, stressing you out? If that's the case, buying a property with a hold and rent strategy probably isn't the best idea to start your business with. You'd be better off wholesaling properties for quick cash. Use the cash to get out of debt and reduce the stress on your shoulders. Then you can focus on buy and hold or lease option strategies.
These are the things you need to think about to determine how you want to start your company and which direction you want to build towards.
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