Newbie from Oahu looking to invest out of state
I started real estate investing almost a year ago and have one rental property along with our primary residence here on Oahu. Currently have a business loan in underwriting where I hope to gain some unsecured funds to expand out of state and continue to increase capital through additional cash flow for future investments.
Converted our previous residence in Pearl City (late 2016) into a rental which makes enough income to pay down that current HELOC with a little extra to accelerate our current mortgage payment. We bought our primary residence almost a year ago using my VA loan in the Aiea (Halawa Heights) area and didn't put much of a down payment but did a significant amount of renovation and have been making some accelerated payments to get some equity into it early on.
Current goal is to renew the HELOC we have on the rental property and continue to gain equity with our primary residence with the intent of converting that conventional loan into a HELOC as well. When used properly, these HELOCs are an excellent way of paying off these loans at an accelerated rate. Trying not to be over-leveraged since I have a family to take care of and having a manageable amount of debt will key for that (increased appreciation here does help with that!).
Recently applied for a Business Line of Credit which is currently in underwriting. If approved will have 50K where I hope purchase an out of state property that cash flows well enough to allow increased capital. That would be used to accelerate payments on current loans and potentially increase overall funds for additional investment opportunities.
I'm interested in hearing other peoples feedback off this initial plan and would like to know if there are any leads for <50K properties in addition to any sound advice for newbies.
Mahalo,
Raffy