Using equity to buy more properties
Can everyone share how people pull out equity from their properties to buy more properties? If you believe in cash flow, by doing this, you would essentially be paying two loans. How does that cover all expenses/mortgages to generate positive cash flow?
I purchased a home ten years ago and now have about 500k in equity but only $188k available in HELOC. I also have another 4 units property at $300k equity. Cash on hand ready for investment is $150k. I really want to buy multi-units (4+) maybe in the Inland Impire area using stated income commercial loan..Is this a good idea? Any advice/suggestions? My ultimate goal is to use the borrowing power to buy more properties that will cover all costs/expenses and so on.