New to Real Estate...Funding for rentals

[Catherine R Orpilla]

Hello REAL estate pros...I need help! I have positive renters by the end of July 2024 but I do not have funds for the down payment to purchase at least two rental houses. We currently have 2 rentals (previously primary homes). I recently refinanced the 1st rental (60% LTV) March 2024 and used 50K for down payment new primary. Took HELOC in Oct 2023 for the (2nd rental) to pay off all debts.

We will have a renter of the 2 rooms of new primary house in June 2024.

Please let me know how can I access down payment funds for new investment properties in July.

[Nathan Gesner]

Quote from @Catherine R Orpilla:

Hello REAL estate pros...I need help! I have positive renters by the end of July 2024 but I do not have funds for the down payment to purchase at least two rental houses. We currently have 2 rentals (previously primary homes). I recently refinanced the 1st rental (60% LTV) March 2024 and used 50K for down payment new primary. Took HELOC in Oct 2023 for the (2nd rental) to pay off all debts.

We will have a renter of the 2 rooms of new primary house in June 2024.

Please let me know how can I access down payment funds for new investment properties in July.

I would like to see the numbers on this because you sound overleveraged. You borrowed $50k from one house to purchase the second house, which means you have three loans for two houses. 

What are your expenses compared to income?

I'm not a fan of borrowing money to borrow money. You will eventually over-leverage and everything will come crashing down when the market turns or some other unforeseen event occurs.

The wise, proven way to build wealth is to earn money, save money, and invest money.