Help! Financing direction

[Sarah G.]

My husband and I are newbies at investing. We currently have a vacation rental that is free and clear in Arizona. We'd like to purchase some long-term rental properties in Wisconsin where we live. What is the best way to go about financing for this? Commercial? Residential? HELOC? Another option?

Also, we have had mixed advice on starting an LLC. We do not currently have one. Thoughts?

[Greg Lemmon]

Unless you are against it. I would recommend moving into your next rental option, or as many call it "House Hacking" A lot of people are saying that we are approaching the top of the market and if those people are right then any medium to high-risk investments could go upside down. With an owner occupant purchase, you will get the best interest rate with the least money down. If you are feeling really ambitious try the BRRRR strategy. Purchase a home that needs small updates that could be an easy flip in value and stay there while you renovate, then refinance or remove private mortgage insurance, followed by renting it out.