How to fund next rental property ?

[Randy D.]

Hi.

I’m looking for some advice on how to proceed with purchasing my next rental property.

I just finished my first property and started renting it. I purchased a very cheap blighted property from the City that I’m currently working on in my spare time. I would like to get moving and take some calculated risk and purchase a turn key property. Somewhere in the 75k range. I have about half that in the bank. I have that amount in equity in my primary residence and the first rental is owned outright is worth about $60k.

I have a LLC. Should I get a business loan, a personal loan, Heloc ? Any advice helps. Thanks

& I’m not exactly risking the farm here so if you’re going to say “wait around and cash flow it” ... yeah I get it But I’d like to get the ball rolling on having multiple tenants.

[Dave Spooner]

@Randy D. A HELOC can be challenging to get for an investment property (although not impossible). Have you looked into refinancing to pull cash out? That's probably your best, most cost efficient option.