Scaling when starting up

[Eric Forsberg]

Hi all…I'd love to hear some strategies about financing when starting off. How do you scale when you're starting out? For instance, I would like to invest in some buy and holds to generate cash flow. I have both a primary and STR mortgage and I was thinking of using the STR HELOC to finance a new investment property. This HELOC would cover both down payment and rehab costs, if needed. That might be a stretch though, if the rehab is too extensive.

Would it make sense to first invest in a flip (or a few?) to generate more cash to fund the buy and holds? My STR has ~$500-600k worth of equity so I could cash-out refinance but the current mortgage rate is 3% and I would hate to lose that to today's rate.

Any thoughts?

[Jason Regan]

Hi @Eric Forsberg that's  loaded question you have there and are going in a few different directions.  You have to use a active cash strategy really grow your portfolio.  Once its big enough it can grow itself.  I have a few questions for you.  Do you have any experience flipping?  It can lose you money or just eat up your time for no money if you do it wrong.  Do you have an active W2 now or an established business so its easier to get the normal loan packages?  With the equity in the home you can definitely look at getting a few more properties but it will stop there unless we use creative strategies to stretch it out or have more active income coming in.  Im going to shoot you a PM