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Updated almost 6 years ago,
What to do with investment money I am saving up?
I am new to real estate investing. I am planning on buying my first rental over the next few months. I do not have much to start with. I want to utilize the BRRRR method of investing. I am planning on buying properties around $40,000. I have $10,000 for a down payment, which meets the 20% that most hard money lenders ask for when lending to new investors. On my primary residence, I have about $35,000 in equity and a lender that will give me a HELOC for up to 95%. My question is: should I use my $10,000 that I have saved on a property down payment or should I put it to the principle on my primary residence so that I can take out a larger HELOC to use for down payments? Thanks in advanced for the advice!