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Updated over 3 years ago,

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Need help making purchase plans for rentals

Posted

Hey everyone! I am brand new and I hope I am using this platform properly (first post). I am really excited about the idea of passive income and I want to be aggressive in going after it! I am trying hard to aquire the knowledge I need to start biulding my portfolio. So I have been doing my research and making my plan of attack on acquiring my first few rentals. After a lot of thought and reading I keep getting hung up on how to scale. Here is my situation, my family owns some land and what I want to do is sell the land and use the money for 20% downs on two or three rentals. Hopefully multi family but probably single family homes due to prices. I want them to be turn key or as close to turn key as possible. Here is where I get hung up though.. after I put all the money into the rentals for the downs how do you guys reuse the same money? I keep reading about cash out refis but no real details or I am missing them. Say I put 60k onto a 300k house. Can you cash out refi the 60k in equity or close to it? Or do I have to improve the property to up its value like the BRRRR method? Obviously I want to use the cash outs to buy more rentals but I don't want to deal with a rehab for my first few deals. I am just not connecting the process of how to recoup the money out of the first few deals for the next set. Also if someone has a better idea then using the land to get started I would love to here it. I keep reading about how people put non of there own money into rentals... I could really us some insight on how to keep rolling the same money over and over and or any ideas you guys have. Anyways thank you for helping a beginner.
Hamers

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