I'm not quitting my job anytime soon, I like it. I want to generate passive income through rental properties and play the long game. Thanks to my in-laws who I bought my home from and their super discount, I have more than enough equity to use as financing on the right deal at the right price. My issue is that due to a high debt to income ratio, I can't get a conventional mortgage. Almost all of it is student loans but that doesn't really matter. Even if I find the right rental deal at the right price, I won't be able to refinance and cash out my HELOC. Doesn't seem good for the long term strategy. My ultimate question as i'm rambling on here is if it's a good idea to look at flipping a couple/few properties in the beginning using my HELOC for purchase and rehab? I would then look to take the net profit after cash out, fees, commissions, taxes, etc. and use it to pay down my debt ultimately bringing me within the conventional lending guidelines. Not that conventional loans are the end all but if you can qualify at a good rate in today's market, your personal finances are probably in good shape. I remember in one of the early BP podcasts, somebody talked about doing something similar when starting out. Maybe it was
@J Scott? Anyway BP i'm interested in your thoughts on the matter. Thanks.
**EDIT** To my original post, the BP Podcast I was thinking of was Show 15 with Glenn and Amber Schworm where they started out $80k in credit card debt, maxed them out to fund their first few flips and then used the net to pay off the debts.
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