Ask Cornerstone: Should I take extended time off from my regular job to focus on a real estate venture?
Is it a good idea to take extended time off (2-3 months) from my regular job to focus on their real estate venture?
I’m interested in purchasing a multi family, that will require a good amount of work. After the purchase, I imagine I will be spending lots of time supervising improvements to it for a good while, until I can stabilize the whole thing. I get the standard 2 weeks vacations and holidays every year, but that’s not nearly enough. I can afford to go a few months without a regular salary.
Can a few months off have any impact on my ability to borrow money down the road (after joining the 9-5 workforce again)?
Your borrowing amount would be affected because your yearly income reduction. Also if your employment history is reset that also might have an effect on your borrowing.
In any case, I would suggest that you not quit your job to do renovation. You are trading one job for another while at the same time you could be jeopardizing both jobs!
Since I do not have a complete picture of your situation my further suggestions and comments might be completely off base, but we must start somewhere. When I analyze a deal that I am considering flipping or renovating and holding, if there is not enough room to hire good general contractor to do complete renovation and still have an excellent deal, I don`t consider doing it. I recommend that you find a better deal official site. The money you would save by supervising renovation you could lose by not earning a paycheck on you regular job. If lack of sufficient funds is the issue I would find a partner or do a smaller project. Without complete picture of your situation this is the best I can do.
In any case, good luck to you in your decision.