What would you do?

[Tiffany Thomas]

My goal is to get enough passive income to surpass my monthly expenses. I am buying a new primary home. I currently own a primary home and a rental property.

I would like to keep my current primary home and use it as a rental as well. The issue is, it will require 30k to 40k to make it rentable and I currently have no money set aside.

My Mortgage for the new home will be $2,800 a month. I net $850 from the rental. My current primary home could potentially provide me with a gross rent of $1000. However, I would have to take put a HELOC in order to have a capital to do the repairs. So with the HELOC payment, and expenses, that would bring my potential net rent on my current primary down to $450.

If I sell the house outright, I wouldn't get much. Could potentially get double if I owner finance it. I would also get a larger cash flow as I would negotiate monthly payments of $800.

I want to acquire more properties ASAP on order to get more cash flow. What would you do to achieve this goal? Should I take out the HELOC and rent iut current property or Owner Finance? Is there another suggestion that you have? I am open to any and all suggestions. Is there a better way to leverage the equity? Should I sell and use the equity for something else? Outright or owner finance? Remember, I have no money but I have excellent credit.