Newbie, could use a piece of advice.

[Cristian Castro]

Hello, Im a 21 year old newbie to this whole real estate investing. Located at Indianapolis, IN. I've got a good background of it from years of watching and learning from my father. So I currently own my own home it was purchased as a foreclosure and I did the rehab myself and now me and my wife and daughter live in it. My question is I want to redo that same cycle, look for a foreclosed home that needs repair to eventually live in it a couple of years to make it my primary residence. Then once I get it paid off, go on to the next one. While at the same time I'll be renting out my current home. And using the cash coming in from rent to pay for the home I'll be purchasing. And I wanted to know what you experienced investors had to say about that. Would it be a good way to get started in investing. What can I do to make getting a loan to purchase the next home. I've heard I can open a home equity line of credit but is that my best option. I appreciate all the tips and advice I can get. Thank you

[Shawn Holsapple]

Welcome to BP @Cristian Castro!

Yes, that strategy will work but is very slow.  I prefer a more aggressive approach [I went from 0 to 20 rentals in 18 months].

I prefer the small local/State banks to partner with.  They are mostly portfolio lenders [they keep their paper in house] and are very easy to work with.

I've been using the BRRRR strategy for over 4 years and love it. You could use your HELOC to purchase the asset with cash and then refi to pull out your principle to pay back the HELOC. Then, rinse and repeat.

There's no reason you can't be financial free in under 2 years!

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-... - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel