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Updated almost 8 years ago on . Most recent reply

User Stats

35
Posts
2
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Sunshine Bizz
  • Jacksonville, FL
2
Votes |
35
Posts

Building my Rental Portfolio - One step at a time - Thoughts?

Sunshine Bizz
  • Jacksonville, FL
Posted

Build my Portfolio - One step at a time - RE experts, please help wake me up if i am dreaming!!!

Background: Credit scope 722, wife has better. Income is good (over $200k) with solid jobs. Have funds in the bank but would like to build foundation that  i can leverage over and over again. 

Step 1 --> Get unsecured lines of credit in the amount of $150 while i have a job and have cash reserves

Step 2 --> Possibly get HELOC to get even more leverage while i have a job and have cash reserves

Step 3 --> Get some deals going with high % interest rates with crowd funding so i have established myself enough and can leverage down the road even more while i have a job and have cash reserves

Step 4 --> Buy $100k to $150k properties in B neighborhoods having net ROI of about 7% that banks would not have issues re-financing down the road or take it in as part of portfolio loan down the road while i have a job and have cash reserves

Step 4 --> Once i have build enough equity in these rental properties, now i try to re-leverage my HELOC, Credit Lines and Crowd Funding to keep expansion. 

Yes, i can buy properties right now with cash but i want to establish my profile that has Crowd Funding, HELOC and LOCs so when i really need the funds to grow, i have an established history and profile that is strong enough to help with next wave of my growth. This is when i wont have too much liquid cash and maybe jobs are no longer there.

Appreciate any guidance guys, i am new at this and trying to line up the right sequence. 

I struggle here quite a bit because some of the responses i read here would say "it depends on your situation". I have shared above my situation and would love to get your investment advice. What would you do in my shoes?

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