Ideas for our first rental property

[Paul Wakefield]

Hello BP

Interested in investing in our first rental property. Looking at either a multi unit or single family property.  

Our current home is valued at roughly 485k and our outstanding principal balance is 242k.  

What would be your favorite strategy for obtaining your first rental property? Would you stay in the current home and purchase a rental? Would you rent out this home and find a new primary residence? 

We don’t have much in savings; however we do have equity in our home. How would you finance? Would you pull out a heloc? 

Thank you for your help BP! Excited to hear your strategies. 

[Seth Wilcock]

@Paul Wakefield - I recommend setting up a HELOC on your current primary residence, and then use that HELOC to buy a property in need of work. Pay cash for the rental, do BRRRR, and when the rehab is complete, use the cash-out proceeds from the refi to payoff your HELOC. Rinse and repeat.