Financing rental properties

[Steve Salvatore]

I wanted to get some advice/opinions on the best way to finance the purchase of future buy and hold properties. Most likely the responses will be all over the place on this one. I have 100% equity in several properties and I'm looking to increase my holding in rental properties through multi-family, townhouses, or single family homes. My preference is in that order if I can find the right deals.

My question is what is the best source for funding? I was always advised to keep a line of credit or multiple open on my rental property equity so that I can do cash transactions. Would it be best to open multiple HELOC accounts, use cash from the bank, or a combination of cash/HELOC/mortgage?

[Stewart Beal]

If you have 100% equity in several properties you should do a cash out refinance with a local bank. Look for small banks that end in "Bank & Trust". Then use the cash you get from this loan to acquire more properties. I once bought 16 properties with cash, renovated them with cash, and then borrowed $1.2 Million against them. I used the proceeds to purchase more property.