$500,000 in Properties, $200,000 in equity, $0 Income?

[Deshawne Peak]

Hello everyone,

My name is Peak, I started my real estate journey back in April of 2019. Before i get into the meat of things i think I should share a quick backstory:

I started reading books and looking into wealth creation within the past year, shortly after found BiggerPockets and the benefits of real estate. I am a recently commissioned Air Force Officer, but currently facing a long waiting period before starting training here in Mississippi. With that being said I am not being paid by the Air Force, which has made it somewhat difficult to expand my portfolio.

Heres my current situation:

I bought my first foreclosure (primary residence) in April for $70k and have since remodeled and got it cash-flowing using The House Hacking Strategy.

Shortly after, in June, I purchased a Duplex for $22,000 via Seller Financing with roughly $5000 downwhich immediately started cash-flowing and offered a major equity advantage. After visiting a small bank, they appraised the property at $60,000, because this was a “handshake deal” meaning there was no deed of trust or outstanding mortgages against the property i legally own it outright. Despite my unemployment status the bank gave me a $40,000 equity loan against the duplex which opened up major doors...

With the equity loan, i managed to purchase a 10-unit apartment complex for $160,000 with $20,000 down also seller financed. The remaining balance from the equity loan is what i have been using to remodel the apartment complex and it has come along nicely!

This brings me to the title of this post...

In a short time, I have acquired an estimated $500,000 in real estate, with roughly $200,000 in current equity. This has snowballed for me and while i am excited, i have no idea how to access this money given my employment status AND low time and grade in the business. I do have rental income, but the 1-2 year timeframe banks prefer hasn’t passed yet.

In short, I’m running out of money to finish the remodels on my apartment complex, I do have a serving job where i make some cash but not enough to compensate the labor hours and material cost my contractors need to finish up.

What can i do? What would you do? Help me please!

[Danny Randazzo]

@Deshawne Peak since none of your investments are cash flowing you should sell them all and put the equity to use in cash flow producing assets. You should keep your primary residence unless you can move out and find inexpensive rent so then all of your equity is working.