Buying my first rental property.
I am currently trying to get my feet wet with my first rental property, I have have looked at over 20 properties in the Denver, NC area. My budget is no more then 130k, I keep running my numbers for my profit margin, I know the 50% and the 20% rules. I currently have a house with 50k equity( owe 288) and I have a home equity line of credit of 25k (1% interest). I have another 30k invested in stocks and 8k in cash sitting in my LLC business account. My questions are as follows:
This question is for the following example of a 120k
- For people that have experience, would it be a smart move to violate the 50% rule by using a home equity loan, which would add lets say 250 dollars more to my monthly expenses giving me around 2-300 dollar profit a month, until my equity loan is paid off?
Any other advice for someone starting out would be appreciated! Thanks everyone!