Financing My First Rental

[Nick Wilson]

Hello! I'm completely new to investing, and am looking for advise. I'm looking at buying my first rental - a SFH in the Midwest. Currently I'm looking in Indianapolis and Detriot. I currently live in Sacramento, CA. I have about $200k equity in my home. My current plan is to take out a HELOC, and use part of that to pay for my first rental, then once it's renting out to re-finance that loan with a regular mortgage.

[Antoine Martel]

Hey Nick. I grew up in San Mateo and the midwest is the way to go.

You can pull a HELOC, let those funds season in your bank for 2 months, then go and buy rentals with conventional fannie mae financing.

With $200k you can buy 10 rentals, each will cash flow $250/mo, so you'll be netting $2,500/mo in cash flow. Let me know if you need help to get started. I don't invest in those markets.

My markets are Memphis, Cleveland, Birmingham, St. Louis. 

Let me know if you need any help