How can I personally purchase multiple homes? I understand that this is a broad question so I am going to explain my money situation. I own a SFR with about 50k-60k in equity and I have another 50k that will be saved by Sept 0f 2015 and would like to purchase 3-4 home within the next year or so by this time. The homes I am looking at in OH are 50-80k in a "B -C+" area.
-Do I Offer a bunch of low ball 25k type offers?
-How does a Refi/Heloc play a role if at all?
- Do I just keep the GA home and purchase one more and be content? ( I will not be, lol)
-Should I sell the GA home to accomplish any of this?
These are questions that are a missing piece of my business plan to obtain multiple homes…HOW DO I KEEP GOING? haha
Also, for those that own multiple home or plan to: At which point did you or should I open a LLC? Thank you guys so much for your time and insight!
Dont worry about an LLC, just make sure you have enough insurance coverage.
Not sure what you mean regarding refi/heloc unless you mean using your heloc tp pay cash then refi into a loan to get your cash back. That could work and many people do this.
If your going to come into some cash soon you might just consider buying homes using conventional 20% to 25% down payment. This is good leverage.
Remember, slow and steady wins the race. My wife and I have accumulated 19 rental homes and we started in 2008 and just got to 19 1 month ago.
Thank you @Curt Davis. What type of coverage and amounts should I request or look for when buying the insurance for rentals?
I have a 2 million dollar umbrella policy with State Farm so though I get my normal liability coverage of 1 million, it also goes under the umbrella for an extra 2 million if I ever needed that much.
You should also make sure your insurance company has rent loss coverage meaning if your home ever caught fire for example and the tenants had to move out until the home was repaired you would still get the rental income from the insurance company.
@Curt Davis I will keep that in mind for my present and future properties. I understand your comment of "steady wins the race" and I can respect that. My main concern is not patience but I plan on how to use my assists and property equity in a manner which will grow even if it takes years. Can you give me an example how you may plan future endeavors with these financial building blocks of mine? I just need an idea or a few routes to take….sorry for being hard headed.
I would use your heloc to purchase cash then refi back out to pay your heloc back.
Also when you get that $50k in September you can but 2 solid homes with conventional financing.
That is something I would consider doing if I were you.
@Curt Davis Thats what I'm talking about brother!! Your ideals will not go unnoticed and thank you so much for a plan to start with. I can not say if I will do it from step to step but the seed is there. Your and benefit to this site and hopefully I can pay it forward to others.
Excuse my misspelling please. I meant to say that you are a benefit to this site! Thank you!
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