Am I on track in using my heloc and cash?

[Heather U.]

Just wondering if there is a better way to do this or am I doing it "right"?  I have 3 SF's and will close on another this week, in North Carolina.  We bought these in 2019. 

Property  1 traditional finance

Property 2 paid cash

Property 3 traditional finance (couldn't cash out refi one above fast enough)

Property 4 paying cash (this included the cash out refi money from property 2 plus a heloc from our primary residence)

Our goal is to have 12 doors with a cash flow of $200 per door for a total cash flow of $2400 per year within 4 years.  So we need 8 more doors.  

After we cash out refi the property number 4 we will have about $110,000 cash (including $35000 from our Heloc) We were planning to use that to buy another Sf in cash, and continue to cash our refi that until we have 4 more SF's and then the last time use the cash out refi money to put a down payment on a 4-plex.  

The only other option I can see at this point is to use the money for an 8-plex.   

Is this the best way to use the cash and keep it working for us?  What am I missing? Any other ideas????

[Derek Harris]

Originally posted by @Heather U.:

Just wondering if there is a better way to do this or am I doing it "right"?  I have 3 SF's and will close on another this week, in North Carolina.  We bought these in 2019. 

Property  1 traditional finance

Property 2 paid cash

Property 3 traditional finance (couldn't cash out refi one above fast enough)

Property 4 paying cash (this included the cash out refi money from property 2 plus a heloc from our primary residence)

Our goal is to have 12 doors with a cash flow of $200 per door for a total cash flow of $2400 per year within 4 years.  So we need 8 more doors.  

After we cash out refi the property number 4 we will have about $110,000 cash (including $35000 from our Heloc) We were planning to use that to buy another Sf in cash, and continue to cash our refi that until we have 4 more SF's and then the last time use the cash out refi money to put a down payment on a 4-plex.  

The only other option I can see at this point is to use the money for an 8-plex.   

Is this the best way to use the cash and keep it working for us?  What am I missing? Any other ideas????

Heather, if I was in your situation, I would skip the SFR and go straight to MF. As long as the numbers still make sense after the cash out refi, then I see no issues.