Advice on next move

[Jordan Blanton]

Hello all, 

I need some advice on what my next move should be. I'm located in Cincinnati, OH and already have on paid off rental, a SFH thats worth about 120k. I also have about 60k of equity in my primary residence. I have about 30-40k in capital that can be used on acquiring more property.

I'm not sure if I should just use my cash reserve to get another SFH, or if I should try to use some of my equity and get a heloc and try to do a rehab. Keep in mind I do not have much contracting skills, nor the time or connections to pull off a quick renovation. It really interests me to try to get a weekly rental (airbnb) type home but not sure if I have enough capital yet to pull that off. I'm just looking to make the best move that would propel me to acquire more property faster and to potentially the most wealth in the future. Any advice would be great, thanks!

[Tanner Sherman]

If you are looking to scale in a way that will allow you to use the same money over and over again and acquire more properties, you should look to get a HELOC on your house, find a hard money lender, find a fixer upper in a good air bnb location, contract everything out, use your cash to pay the hard money lender and leave your HELOC untouched for emergency reserves in case you absolutely need it (or are ready to have multiple project going on at a time.)