Buying multiple rentals cash then using HELOC to buy more.

[Joseph A Henke]

Hi Everyone!

I am a real estate agent agent in the in the NW Chicagoland area. I work with many investors and I am ready to start investing in rentals myself. I am interested in the Rockford, IL area for the low prices and decent rental rates. I plan to buy 2-3 houses for 50k or less a piece then uses HELOCs to recycle the money and buy more. Are there any holes in this strategy that I am not considering? I can't qualify for a loan until I am two years in the agent business so this is why I plan to leverage in this way.

[Bartholomew B.]

I invest just north of Rockford in Machesney Park, IL. I would recommend you check out the Rockford Apartment Owners Association. I'm sure you can find a member that is or has implemented the exact strategy your looking into.