I have been a landlord for 9 years now and I am looking to scale up faster because I am tired of cubicle land. My goal is to be full time investing in two years. I have a duplex that’s free and clear estimated worth of 45k. I don’t have any money saved up for a dp and closing and planned on using the equity to fund the next property. How are some of you buying several deals within such a short time frame ? What advice would you give me given my current situation? I would’ve like to buy 3 -5 properties next year. Am I being too ambitious. I just feel that after 9 years I should be further along than what I am. Worried about being over leveraged. Waiting to save up the money for a dp would be at least a year and half.
I'm not sure how the HELOC side of things work... but if you were to do a loan it's REALLY hard to get one below 50-55k. A lot of banks won't do them, but you might be able to get around that with a small local bank. But remeber you are only getting 70-80% of the value out plus you still have to pay closing costs etc (which might be a lot for such a low value property).
If you get around this with a HELOC let the funds season for few months in your acct then you can go out and get new property. I'd highly suggest talking to a loan officer before you do anything and make sure you can still get a funding for new property.
I did a HELOC with a small bank in TN on another property 2 years ago and paid interest only for a year but I wasn't educated enough about what I was doing. I ended up selling the property earlier this year and used the money to pay off debt. Big mistake in selling.
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