All Forum Posts by: Byron Bailey

What is the best way, or what are the ways, to pull equity out of a rental property that has already been paid off to purchase more properties?

Good morning, All:

I have been on the sidelines, learning from all of you and have decided to pull the trigger on buying my first home. I did not go the hardcore investor route. Rather, I plan on buying a home on a program, live in it for a year, then repeat the process.

I have several questions regarding this strategy. First I will provide the numbers:

I am in Dallas, Texas. I am purchasing a 2019 new build in a developing part of town (Near the State Fair of Texas/Fair Park) for $155K. It appraised at $155K. It is a 3 bed/2 bath/1 car garage w/ 1180 sq ft. The program I used allowed for me to buy the home for $0 down and No PMI on the property, since it is in a low income area. Total cost to close will be around $4000. I believe I should be able to get at 1200-1400 in next year when I move.

Questions:

1. Do you think this is a good plan?

2. What are the key metrics/formulas you used to answer #1?

3. Do you think I should AirBnB it out or find roommates in my first year?

4. Does anyone know of anyway I could potentially buy another home within this first year to expedite the exponential potential?

5. If you have any other comments, suggestions, or any other advice to give a newbie, please share!

Thank you so much @igor messano!! Just the advice I was looking for. What all did they ask you on the line of credit application?

I understand the difference. I was wondering more in the sense of credit card line of credit or if there are other sources to get lines of credit outside of using equity in an already purchased asset.

There are a few cash offers in my area that I would like to take advantage of but I don’t have the cash to do so and rehab. Is it possible to get a line of credit of $50k or more? If so, how? My credit score is 700+

Thank you all!

I am a new disciple of Bigger Pockets. I am new to real estate investing so I am in the education phase (reading books, following BP forums, listening to BP podcasts/webinars, etc.). However, I want to start taking action. I want to start investing in real estate. Preferably buy and hold SF (for starters), but open to learn about wholesaling and flipping. I am a full time law student in the Dallas Fort Worth (DFW) area therefore, I do not have a W-2 job which would make it near, if not completely, impossible to get a bank loan. Question: What do you all suggest I do to get started in real estate? Or what should I be doing now? (And any other advice you would give someone in my position)