Rental Property Investor · Chester, VA · Member since 2016 · 123 posts · 32 votes
I just got approved for a $200k line of credit backed by a few of my rentals equity. My plan was to use the LOC to fund purchase/renovations of a house at a time to build up cash for my long term goal, however I'd like to see if there is a better option out there. My long term goal is to invest in a syndication or JV an apartment building or mobile home park. I thought of using the line to JV as my half but the line has to be paid off for 30 days of the year so I can't use it for a long term investment.
Hi @David Sanford. The problem is the payoff at year-end. That’s going to be tough. You could loan it out as a hard money loan to a reliable contractor or through a hard money loan. Make a clear rule that you have to have the funds back by a certain date. Then wait 30 days and do it again.
That’s a surprising rule - I wonder if you could get them to delete that provision next year. If so, you could invest in an AirBnB/VRBO property in a strategic location. My friend has three at ~ $700-1mm that he has only 10% down on and he reports that they cash flow over $60,000 each annually. I’m looking into this myself.
Syndication or fund is my favorite investment over the long run however.