Newbie to BP~ SFR Rental in So Cal
Good Evening all. I have started reading the forums and also am half way through Ultimate Beginners Guide to Real Estate Investing. My current situation: Last February I bought a SFR in Beaumont, CA. I purchased the house for $185,500 ($15,500 of that to be paid interest free to satisfy the sellers personal debt) so the sales price shows $170,000. I put the 20% down (my own cash) so the current loan amount is approximately $135,000. At the time, the house appraised for $222,000. The mortgage payment is $1045 and I rent it for $1500 a month. The tenants pay all utilities and maintain the landscape. Initial thoughts on the purchase and current status?? Good start??
NOW, I'm getting antsy / excited about adding to my portfolio and possibly buying an additional SFR or duplex, triplex, fourplex. I am considering refinancing and using the equity for the next purchase(s). Is refinancing or obtaining a HELOC a better solution? Should I use the equity or HELOC from my personally owned home or the above mentioned property? I recently met someone (in California) who has been investing in SFR's in the Midwest with amazing cash flow results. This has sparked my interest because as you can imagine the money stretches further than it does in CA. Thoughts? Suggestions? Experiences?
Thank you for your time, input, consideration.
Jim