Use my own cash or lines of credit from the bank?

[Joshua D.]

So the initial purchase i use my lines of credit for he purchase of the property. Then I use all my rental income and cash from my business account to rehab it and when I run out I use more of the lines of credit. Am I doing this right or what I try and use my business account to keep from going into more debt and paying more interest. What’s the best way to do all this please? Please really is I was to use the lines of credit and banks money my coc roi would be sky high? Because really I would be putting no money into my deals.

[Dave Laqua]

we all used lines of credit to start- and in a  pinch we still use our credit to quickly purchase materials for refurb...then using the rent deposits- we pay off the Lowes card/ Home depot card.  When you get to a level you feel comfortable, say 10 properties?  i suggest you pay off your notes, one at a time - using rent money and your own cash flow....then as each property is paid off you become safer economically ( what happens if 5 of your rent homes go empty and your not working due to an illness? Good luck making 5 mortgage payments with no income)... everyone has thier own technique we are now 40 plus rent homes - with no mortgages....Good Luck!