So, here's my situation. I've got 2 rentals in central FL. Each is cash flowing about $250/month. I'm upside down on rental #1 and never plan to pay it off due to its value, but it's cash flowing so I'm ok with it. Rental #2 has a little equity but usable right now. I'd like to acquire another property by the end of the year in the $150k price point. In your expert opinions, what's my next step? I like the HML to refi with equity route. Your thoughts?
Next step is to listen to Podcast 80. :) If you are cash flowing you could be saving that money to acquire enough for a down payment on another property. My suggestion would be to find a super fixer upper and build equity into it. Or perhaps flip and then ramp up your capital that way so that you can acquire more buy and holds. But the home equity route could work as well. I haven't acquired any buy and hold properties yet, but hopefully soon.
I'm really interested in doing a flip to build some capital for another hold property. I'm looking more and more at fannie mae homepath and freddie mac homestep properties as possibles. Your thought?
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!