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?