6. How can I minimize the cash I need to invest?
If you already own property in which you have some equity, you might choose to leverage it. How? You might take, say, an 80% mortgage on the new property, but to avoid paying 20% in cash, what many do is to take a 2nd mortgage on some existing property. In essence, they now have two mortgage payments to make (one on the new place, one on the old), but they made the new purchase happen with no money out of pocket.
And, in fact, there are some neighborhoods where you can buy 3- and 4-Flats that have been rehabbed and are Section 8 ready that can be pre-tax cash flow positive even with the two mortgages.
And this is just the start of what you’ll find at www.Chicagoland2to4Flats.info!!!
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