What's the Best way to buy my 4th property?

9 Replies

Hey bigger pockets! I currently have three properties. One I am living in and two I have rented. I have quite a bit of equity in all three properties. I was wondering what the best way to buy a fourth property would be. I don't have the 20% down payment plus closing costs available in cash right now but would like to continue to buy properties. If anyone has any suggestions let me know thanks!!!

-Chris 

Are you in a position to get a HELOC on one or more of your properties? Some banks will let you do a HELOC up to 89.9%

@Christopher McPherson you can use the HELOC for the 20% down or to purchase the whole property cash. Whatever makes most sense!

HELOCs are doable for rental properties, but sometimes harder to come by. It may also make sense just to refinance into a conventional 30 yr if you have enough equity to make it worthwhile.

Be careful daisy-chaining your properties together financially with HELOCs because if a downturn in the market occurs, your property investments will fall like dominos. It's better to lose individual properties instead of multiple investments at the same time.  

you can try and package both rentals with the new acquisition. I would speak to a lender.. I am also in the same situation and at this moment trying to see what my property is worth or appraised for.. I can then use those funds as a downpayment for my next property as the lender already did a financial background check.. One thing I do not want to do is over leverage the properties.. I still want to keep at least 40% equity.. Also the acquisition must be a cash flow property.. good luck