Leverage existing rentals to buy more?

[Brian Payne]

Greetings all! I'm wondering if a HELOC is the only option to leverage my existing rentals to buy more? I have 4 sfh's that are paid for, and want to find the best way to get cash to use for either a down on a small mf property or just by more sfh's! I've financed primary residences before, but never a rental property so far. Huge thanks BP friends!

[Robert White]

Brian,

Not sure if the cashflow in that area justifies it, but you could also find some private money lenders to provide you a (70-80%?) mortgage on those properties at a higher than market interest rate, then use those mortgage proceeds to finance new investments. I'm not certain if you'll be able to finance that much more than a HELOC, but it may allow you to finance the new purchases at a bank a bit easier.