How do I expand my real estate empire past the first rental?

[Account Closed]

Hey everyone,

I know this is probably a total newbie kind of question, but its something that i think i would find easily but i cant seems to find a subject on it. I currently own 2 homes, one is my main residence and the other is a rental unit (5 year old town home). I would like to expand to other rental properties, but im not entirely sure what my next step should be towards buying my next property, specifically with the financing.

How do people expand past the first one? I've heard that people pull out equity in the first one and put it in the 2nd one, and i've also heard that people save up the money they make each month from their rentals and put that towards their rental. What do you do? I'm looking for single family town homes/condos that range from $90,000 - $120,000. Since i have a town home already i would like to get a condo nearby in that area. Their are several for sale that look promising.

This seems like a heavy question but i just need to know what people who do have multiple rental properties did to help them expand. Thanks for the help!

John

[Will Barnard]

Everybody has several options to choose from, not everybody can qualify for them all and not everybody is willing to put forth the effort on some.

Here they are:

1. Seller financing

2. Conventional mortgage

3. Small local community banks

4. HELOC

5. Secured and unsecured lines of credit

6. Private investors

7. Hard Money

8 Purchasing subject to (sub2)

9. MLO (Master Lease Option) and Lease Options

10. JV (Joint Venture) / Partnerships

That is what I can think of off the top of my head.