New Investor in Denver

[Andrew Johnson]

Hello all! Quick question for the masses as it relates to starting out in the business. I have limited cash available so my thought process is to get a HELOC or 2nd mortgage on my primary residence for the purpose of generating available cash to invest. I'm interested primarily in buy/hold investments to start out, most likely out of state turnkeys due to the current market in Denver. I have plenty of equity (about 100k) available to use that is currently not working for me at all.

I'd love to hear your thoughts on the plusses/minuses of going this route to start building up a rental portfolio.  I'm interested in fix/flips as well but that would only be to generate more cash for buy/holds.  Passive income is definitely the end goal.  Thanks all for your help! 

[Dan Mackin]

Have you considered being the funding for some flips to build that equity up for when the market is a little more in your favor here? There are always people looking for funding and someone with a good reputation for flipping could be a great partner to start out. 

Also there's some great heloc options around here right now so dig a bit. If you want to max out the potential of it I would wait a few months while the summer gives a good jolt to your value.