Buying First Rental Properties Questions on Best Way to Start

[Ricky Graziosi]

I'm buying my first properties soon and am wondering which of these would be the best strategy or if there is another way that would be better. My goal is to buy and rent out long term. I have the houses lined up but have questions on which would be better to start with.

Options:

1. Buy 2 properties with commercial loan at 4.5% pay off in two years and get HELOC. Continue to buy properties using this and fixed mortgage conversions.

2. Buy 4 properties using commercial loan at 4.5% and pay off in 5 years. Get HELOC and continu..e the same.

3. Buy one property with cash and get HELOC on it. Use this to buy more properties granted this would be more difficult due to how small the line of credit would be.

4. Potentially something else? .

Please look at this as all houses rented out and flowing cash positive. All of them falling between . between 1.5-2% rule.

Thanks!