San Francisco, CA · Member since 2018 · 72 posts · 30 votes
I just bought my FIRST property in Northern CA using an FHA loan
What are some ways that I can scale up into my second property within a year?
I will be saving $1,800 - $2,000 a month and my goal is to buy a multi family property within 12 months.
Someone suggested that I save, then do a cash out refinance in 12 months, and roll the funds I have saved into a new FHA loan while using the cash out refinance money for repairs and rehab.
What are some methods that worked for you? Or things you would’ve done differently??
All input and ideas will be extremely appreciated!!
@Account Closed there are only a few ways to grow your equity snowball. You can either use high leverage or you can create value and refinance out. If you used an FHA loan, you would normally have to make some improvements to the property to get significant enough gains to really get ahead and do a cash out refinance. Did you put down 3.5%? That means there isn't a ton of equity unless you get some massive market appreciation.
This is a get rich slow game so it takes a few years to really get rolling. Don't be discouraged. Keep saving money at a high rate and keep at it.