Where do I go from here?

Question

Hello everyone! I would consider myself an investor in his infancy. I am from Sugarland TX.

Currently I have 2 properties (one in Magnolia TX and other in Katy TX).

1st Property ($191k purchase price built 2013)  is Netting $400 a month after all expenses (This was our 1st personal home then leased out)

2nd Property ($192k purchase price built 2010) is Netting $350 a month after all expenses .

I had put 20% down payment for both homes to avoid PMI.

The house we currently live in (2014 built) also was purchased for $350k with 20% down.

I have made additional payments on my current personal house and now my equity in it is about $160k.

I am confused as it to where to go from here.

Do I take a HELOC and get 4th home..5th home ? Or just ride as it is.

Abdul Siddiqui · Answer

@Michael Karl, thank you for your response. I am trying to have paid off homes (preferably 5) that will help me supplement additional income when I am close to 50 (stretch goal). I am 35 now. Since these homes that I own are fairly new, I plan to hold them for a long period (10+ years).

I have approached my lender for a LOC but they said that based on my debt to income ratio I would not qualify for additional loans.

Michael Karl · Answer

@Mohammed Siddiqui, I would have you say with 2 income properties under your belt you are a little past the infancy stage.  But the question I have for you is what are you looking to get out of these rentals.  If you are looking to build an income stream from them then you should consider a LOC to use some of your equity in your personal property for down payments for more rentals. At this point you seem to have the landlord aspect figured out, I do not know your area but something to consider would be multi family, like a duplex or triplex.  you can have multiple tenants under 1 roof and increase your monthly profit.