Finally have some financing- LET'S GO!!!

[Glen Fitzmaurice]

Good day all.   I'm almost 55 years old and I'm looking to create some retirement income.

I've owned martial arts schools for 27 years and I'm ready to do something different.  

I own one of the commercial properties where I operate one of my karate schools.   It has two apartments that generate $28K a year and a basement where I have heated storage for cars and motorcycles that generates another  $12K.

After speaking with a few banks I have been able to acquire some financing. I can get a HELOC on my home for $85K and I can get a HELOC on my commercial building for $50K.

I'm NOT a carpenter or a handyman but I'm willing to learn.

Having said all that.....I'm really not sure where to start.   

I won't need any income from any properties I buy for the next 3-5 years.   My thoughts are to buy a distressed property, fix it up and rent it, put a mortgage on it, pay back my HELOC and repeat over and over and over.

Just not sure if I should be looking at single family homes, duplexes or multi-units.

I appreciate any help, suggestions and guidance.

Thanks all!!!

[Allie McAlister]

Hi @Glen Fitzmaurice

Congrats on getting your financing lined up, that’s a huge step!

Your plan to use the HELOC to buy, rehab, rent, and refinance (the BRRRR model) makes a lot of sense, and a lot of investors get started this way. Depending on the market you're looking at, you might find it easier to start with single-family homes before moving into multi-units. They're typically simpler to finance, manage, and sell if you decide to adjust your strategy later.

If you're looking to invest outside of your local area, Memphis has been a great market for out-of-state investors because of the low entry price points, steady rents, and landlord-friendly laws. I'm an agent here and work with quite a few clients who use this exact HELOC-to-BRRRR approach.

Happy to share some examples or talk through what kind of numbers make sense for your one if that would help. You’re definitely on the right track — just take that first small deal, learn the process, and scale from there.

Best of luck!