Hey guys,
I'm new to the forums and am trying to figure out the best way to get my 2nd property.
I have skills at renovations/building and will fare well in the flicking game in the Auckland market. However I have found a property that has greater long term potential that is really run down and would require more money to complete than I have available right now.
My options seem to be to buy it and renovate it to what my funds allow and then flick it.
OR
Buy it, cheaply renovate it so it can be tenanted (its really un-habitable right now) until I can free up more cash over 12months holding to 'complete' the house.
The issue with option 2 is that i'll be bleeding about $300 a week on my 2 house portfolio. To circumvent that I was thinking of using about $16,000 of my renovation money to cover the bleed for 12months until capital growth allows me to either buy a 3rd property (flicks to pump extra money into my existing homes) or complete the redesign.
I have a good idea on pro's and con's for both however I would hate to start trading (get tainted) and in a year or two be out of range of buying a hold in Auckland.
On a side note, does anyone know if I was bleeding by $300 a week would that massively affect my borrowing potential with the banks if I have enough equity to buy a 3rd house?
Regards,
S
I'm new to the forums and am trying to figure out the best way to get my 2nd property.
I have skills at renovations/building and will fare well in the flicking game in the Auckland market. However I have found a property that has greater long term potential that is really run down and would require more money to complete than I have available right now.
My options seem to be to buy it and renovate it to what my funds allow and then flick it.
OR
Buy it, cheaply renovate it so it can be tenanted (its really un-habitable right now) until I can free up more cash over 12months holding to 'complete' the house.
The issue with option 2 is that i'll be bleeding about $300 a week on my 2 house portfolio. To circumvent that I was thinking of using about $16,000 of my renovation money to cover the bleed for 12months until capital growth allows me to either buy a 3rd property (flicks to pump extra money into my existing homes) or complete the redesign.
I have a good idea on pro's and con's for both however I would hate to start trading (get tainted) and in a year or two be out of range of buying a hold in Auckland.
On a side note, does anyone know if I was bleeding by $300 a week would that massively affect my borrowing potential with the banks if I have enough equity to buy a 3rd house?
Regards,
S
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