Critique my business model

[Account Closed]

Hello,

Background:

-I own a duplex in Florida that I purchased for 65k cash, so the property is free and clear. I have owned it for 6 months in the name of my LLC.

-I am thinking down the road about slowly adding more properties in the price range of my first purchase (roughly 30k a door/rents 700).

Goal:

-Slowly grow rental real estate portfolio through acquisition of properties built after 1980, block construction, renting for at least 600 per door at cost of 30k per door. Use conservative amount of leverage. Must own properties in LLC, very concerned about personal exposure to property liability.

Problem:

[b]-Any suggestions of how I can take equity out of my initial purchase to fuel future growth?

-Every bank I have spoken to will not allow me to take a HELOC on my investment property because it is owned in the name of an LLC (I am unwilling to take the property out of the LLC for more favorable lending terms and will not own the property in my name with an umbrella policy).

-I am also reluctant to take out purchase loans for each additional property I purchase because of the relatively high origination costs vs loan amount and because I can only get commercial terms for the property owned by my LLC.

Thanks.

[Jon Klaus]

I like your plan. If you keep buying you will have substatial income after severall years.

You could add a "trade up" strategy to the plan. Look to sell properties occasionally when you can sell at enough of a gain to roll the proceeds into better or more properties. You can use 1031 exchanges to protect from tax.