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Updated over 13 years ago on . Most recent reply
![Mickey Harrison's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/81472/1621415683-avatar-mickey504.jpg?twic=v1/output=image/cover=128x128&v=2)
looking for direction in building my protfolio
Some info:
I currently own
1. Primary residence (has a efficiency attached which helps pay 1/3 of expense;mor,tax,in) owe 126k 27yfixed worth 165k
2. duplex with 70k 25yfixed mor (through SBA). worth about 130k
-This property when full rented has a positive cash-flow of 6k yearly and breaks even if only one unit is rented. CURRENTLY RENTED TENANTS PRESENT FOR 3 YRS.
3. Single Family Home 50k 15fixed. worth 63k
- positive cash-flow of 6k a year. purchased a few months ago CURRENTLY RENTED TENANTS PRESENT FOR 3 YRS. Tenant is enrolled in sec 8.
I do all management and repairs (except major ie elec, roof hvac). To purchase my second rental investment I used the positive cash-flow from my first property for a down payment. Now looking to build my portfolio. I was looking for some suggestions on strategy.
Is it recommended to:
1.Repeat the same? Take the positive cash-flow from both properties and purchase the next property with a mortgage.
2.Pay down my lowest mortgage ASAP.
3.Max borrowed loans from FHA of 4 and then start paying down.
4.Save more of the cash-flow to do the next deal all cash.
5.Combine cash-flow and Home Equity Loan to do all cash purchase (will a HEL be easy even though all properties have a 1st mortgage.
All of the above would be done after I have at least 6 months of mortgage payments in reserves (not including primary res)
With interest rates so low, what would some of you suggest. I understand there are lots of variables just looking for a pointed direction to finite my plan.