Lines of credit or mortgage?

[Joshua D.]

So since I started I purchased my first 2 properties with cash. First one a duplex with $22,000 all in and cashflowing $700 a month. Then a SFH for $30,000 all in and cashflowing $400. I then took a line of credit out on my SFH and got $75,000 I could use and rolled that into 2 other properties. Then took line of credit out on duplex for $44,000 and rolled that into 2 other properties and continuing that process which now have 8 all together. Am I doing this right?

[Seth Hayes]

There's nothing wrong with your approach so long as you don't overextend yourself with your borrowing. Make sure the properties you are borrowing against still provide enough to cover the borrowing and still turn a profit. That way you don't have to rely on the new acquisitions to cover the expense incurred to acquire them.