Innovative Strategies
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago,
Building my Rental Portfolio - One step at a time - Thoughts?
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?