Building my Rental Portfolio - One step at a time - Thoughts?

Building my Rental Portfolio - One step at a time - Thoughts?

Jacksonville, FL · Member since 2017 · 35 posts · 2 votes

Build my Portfolio - One step at a time - RE experts, please help wake me up if i am dreaming!!!

Background: Credit scope 722, wife has better. Income is good (over $200k) with solid jobs. Have funds in the bank but would like to build foundation that  i can leverage over and over again. 

Step 1 --> Get unsecured lines of credit in the amount of $150 while i have a job and have cash reserves

Step 2 --> Possibly get HELOC to get even more leverage while i have a job and have cash reserves

Step 3 --> Get some deals going with high % interest rates with crowd funding so i have established myself enough and can leverage down the road even more while i have a job and have cash reserves

Step 4 --> Buy $100k to $150k properties in B neighborhoods having net ROI of about 7% that banks would not have issues re-financing down the road or take it in as part of portfolio loan down the road while i have a job and have cash reserves

Step 4 --> Once i have build enough equity in these rental properties, now i try to re-leverage my HELOC, Credit Lines and Crowd Funding to keep expansion. 

Yes, i can buy properties right now with cash but i want to establish my profile that has Crowd Funding, HELOC and LOCs so when i really need the funds to grow, i have an established history and profile that is strong enough to help with next wave of my growth. This is when i wont have too much liquid cash and maybe jobs are no longer there.

Appreciate any guidance guys, i am new at this and trying to line up the right sequence. 

I struggle here quite a bit because some of the responses i read here would say "it depends on your situation". I have shared above my situation and would love to get your investment advice. What would you do in my shoes?

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  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    9y

    Privileged Problems.

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y

    @Sunshine Bizz I think its a good plan. Let me know if you need help or specific questions.

  • Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    9y

    Step 3.... crowd founding... is not that simple. Learn more about that, I'm pretty sure there are some strict requirements to do that, not for a newbie.  

    Step 4... You should be in a very good market, plus your HELOC is against your primary residence!!. You can get other types of loans thought on your equity for investments. Listen to this simple explanation...

    https://www.biggerpockets.com/renewsblog/2015/04/2...

  • Jacksonville, FL · Member since 2017 · 35 posts · 2 votes
    9y

    thank you for feedback gents, appreciate it.

    Regards 

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