Newbie with two properties - How to finance to continue to grow?
Hello all. Newbie here. My wife is a property manager and she's come across two decent deals in the last couple of years with owners wanting to sell there condos. So we purchased both condos. Our goal is to acquire 5-10 rental properties in the next few years to help fund our retirement. Goal would be to use the rent to pay off the loan on each property and then use rental income to fund our lifestyle after the loan is paid off. We'd be stupid to not use my wife's knowledge in the PM area to get ourselves ahead in life.
The first condo we took out a HELOC on our primary residence to purchase it. Second condo we took out a LOC on the first condo to purchase it. My plan is to continue doing this. Take out LOC on second condo to buy a third property. And so on.
Is this a good way to acquire properties? I've heard we'll run into funding issues after 4-5 LOC. I figured at that point we can focus on paying off one of the LOC to free up cash to buy another property. My wife does the PM and picks the properties to acquire. I'll be the one more focused on obtaining financing.
Any pointers on the financing aspect of acquiring rental properties would be appreciated. Is this a decent way to acquire properties? Any other pointers would be appreciated. Thank you.