Just bought my first multifamily rental- how can I buy another?!

[Dondy Desir-Gutt]

Hi guys, 

I am new investor that has been following Bigger Pockets and everyone that is talking real estate investing for the past 2 years. With that said, just this past May 2022 I have finally closed on my first rental property. I am NYC native (Brooklyn.- to be exact) and Newark prices offered a better entry as a first time home buyer for a multi-family home. I have bought a 2 family home of which my husband and I are house-hacking in the ground level apartment while we plan to Airbnb the entire 1st and 2nd units totaling 6 bedrooms and 4 bathrooms. We plan to cash flow well -as we've ran the rental calculators close to a few hundred times (lol) and is getting ready to launch to host guests in our home after about 2 months of getting funding to furnish and prepare the home. Now that we are going to launch, looking at the up-and-coming developments happening in Newark (it has the same energy as Brooklyn over 10 years ago) with many real estate investment opportunities, I would like to get information on how to start with a second rental and work on the strategies on financing my 2nd property. 

Any thoughts and suggestions. I would love to hear your feedback. Thanks in advance.

[Benjamin Aaker]

Since you are living in your first rental property, you should be able to take out a home equity line of credit (HELOC) on the property. The HELOC sits ready until you find your next property. You'll essentially take equity out of the first house to buy the second one. Keep in mind that the interest rate is usually variable but has a maximum rate of rise. This needs to be factored into your calculations and the amount you take out needs to still allow house #1 to cash flow.