I am in the process of buying my first home with my VA loan. I will be renting every bedroom to friends and making roughly $1000 a month cash flow. I have W2 income I can live on and also save extra money with.
I plan to buy another house hack in 1 year and move into that house. Probably will do this for many years to come with VA and FHA loans.
Should I save the cash flow in my savings account or use it to pay down my mortgage and then take it out later? My goal is to accumulate as many rental properties as I can.
@Scott Diller If your end goal is to use the cash for another property I wouldn't pay it into your principle.
Savings account might not be the best, but at least a high-yield account would be better than nothing.
Thank you David. I asked because I thought I heard on the BP podcast you should put it into the house and take it out later for tax saving purposes. I can’t remember exactly what they said. I may only have $10-15k equity in 1 year since I am putting $0 down. Not sure if there’s a minimum for home equity loans or HELOCs. I will look into a 1 year investment account over just savings. Appreciate the advice.
Most lenders won't loan more than 70-80% LTV for HELOCs, which means you wouldn't be able to tap into it for a while.
Now I’m tracking. Thanks a lot.
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