Trying to get to the next level in rental properties

[Anthony Simone]

I have 3 rental properties and my question is how do I get to the next level with not having a lot of money in the bank. I know I can do a cash out refinance, but with the high interest rates right now this doesn’t seem feasible. How do I buy another property without refinancing? 

[Brian Bohrer]

Hey Anthony,

I am in a similar situation, and I have determined that the best way for me to acquire additional properties without much out of pocket is to pursue creative strategies like Subject-to, Assumable loans and owner financing!  I am currently doing extensive research on each avenue as I have an owner financed deal that I am trying to close sometime next quarter.  

Dig around on the forums and buy a couple books and I am sure you will find the niche that will work the best for you in your market.   Also, foreclosures are expected to pick up as the economy is slowing down during the Gov't's attempt to slow inflation, so there could be some opportunities there as well!

I wish you the best! Take Care,

[Manny Vasquez]

@Anthony Simone - Have you considered a HELOC (Home Equity Line of Credit)? If your property has sufficient equity, most banks will allow you to get a HELOC up to 70%-80% (or more sometimes) of CLTV (Combined Loan to Value). You don't pay anything unless you pull out the funds. So, let's say you get a HELOC for up to $100K and an opportunity comes up for you to buy but you only need $35K. This means that you will only pay on the $35K and you will have an extra $65K to jump on another opportunity. If you do nothing with the remaining $65K and once you pay off the $35K you borrowed, then you're back up to $100K in "available funds" and you can start the cycle again.

[Eliott Elias]

What's more valuable, your cash or the cash flow? You can expand a lot faster with cash on hand. You should also be using owner finance to get you in deals with low down.