Looking to buy my second income property

[Scott France]

We currently live in a single family home and we rent out our old townhouse we completely renovated. We bring in about $500 a month profit from that and have over $50k equity in the town house . Looking to purchase second income property but don’t want to borrow against the first one . Any good ideas ?

[Shane Correll]

Hey Scott,

I am new to investing and looking to buy my first flip this year with the intent to switch to buy and hold long term. I think you are in a good spot. If your intending on using the BRRRR strategy I would say you are well on your way. If you plan on keeping that first rental property and do not mind holding for the long run I would say use the equity. As I have heard many time on the BP PODCAST what good is equity if you can't use it. If it where me I would get a home equity line of credit (or some other form). If possible try to leverage that money for a down payment and rehab fees for your next property. Just imagine if you could get another $500 a month flowing in. Once you refinance the deal (if you did it right) you will be able to pull your money back out. You would be well on your way to financial freedom with $1000 monthly cash flow and 2 rentals. My intent is is do build up enough equity that I can use the line of credit to pay cash for my deals and not spend anytime seasoning (the 6-12 month you have to wait to refi).

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