Heloc strategy and how to proceed

[Juanita Bell]

Hello All. Let me first say I love BP. I have been binge watching podcasts for several months and I am hooked. The light bulb went off maybe a yr ago when I met a guy who had 52 properties in Memphis, TN. This guy was a friend of one of my tenants. Let me start off by saying I have 2 properties, I bought for cash, in TN. This was back in 2008 and I had no idea what I was doing nor that I could keep buying and find financial freedom. So anyways, a tenant had an AC issue and said that she knew someone who could fix it. She gave me the number and I called this guy whom I later found out has many, many properties. Anyhow, I have been researching and trying to learn from him and from BP. I love the Heloc strategy and will soon be getting hopefully around 120k from my primary residence in the form of a HELOC. Prices have boomed in the Dallas area where I reside. The 2 properties in Memphis will never appraise over 50k so I can not put a "mortgage" on them. They are rented out and I will forever keep them. So with this HELOC I will surely buy properties that will appraise higher so I can refinance them and pull money out when the time comes. My question is this, should I buy say 2 properties cash that equals 120k or so (this is all hypothetical, I am more interested in thoughts about the strategy and if it is doable) and proceed with the BRRRR strategy then pay back HELOC and repeat or should l buy multiple properties via financing and put down payments on them then do the BRRRR method. I am interested in properties around 80k, of course simple math would give me 5 properties I could potentially buy instead of 2 when paying. I am trying to come up with a plan to get as many properties as I can in the next 5 yrs. So am I missing something or am I looking at everything as I should? I have learned so much from BP it is insane. I just need to pull the trigger. I found a local bank that works with investors and offers HELOCS. Only thing is the investment properties have to be within 45 miles of their branches. Any thoughts?

[Juanita Bell]

Thanks Douglas, I will shop around more in Memphis then, that's awesome. I would like to take advantage of some properties in TX as this is where I live. But my 2 properties in Memphis have been nothing but fabulous as far as cash flow, a couple of repairs here and there. I have them rented out to section 8 folks, the rent is higher. Now with that being said, there are issues that arise. I tried to self manage for a long time and it was exhausting, so I basically have a handy man that I can call to resolve issues. I thought about a professional management company if I do in fact purchase more in Memphis. I had no idea of what was happening in 2008, I was contracting in the middle east and caught these 2 properties via online auction. I can not believe its been 10 yrs, I have wasted a bunch of time.