Are You Ready to Become an Investor?
Join the new webinar now
JoinPros
Cons
Infinite return on investment, little to no cash left in your property
Scalability: You can scale relatively quickly which increases both the number of investments in your portfolio, but also increases the overall value of your portfolio
Equity: Instant built equity after you refinance,
Passive appreciation long term
Debt pay down along with monthly/annual cash flow tends to be higher
The numbers rely heavily on a strict timeline;
delays in completion can result in large interest repayment
Initial capital investment is high
Difficulty in renting after renovation can affect the budget
Requires extensive renovation to force appreciation and extract all capital
A bad appraisal that doesn’t align with your estimated after repair value can result in the inability to refinance, or difficulty in paying back the lender