Hello all, I am new to RI and I am well into the 7 Steps of Getting into RI. I have increased my knowledge base exponentially since I've begun. I have learned many different strategies and I am trying to nail down one or two that I can focus on and master before I move on to more innovative and savvy techniques. I want to focus on Fix and Hold being that Cash Flow is my goal.
With that being said I wanted to know if the following strategy would work as I understand it. Sometimes the idea works in your head and not on paper. Can you guys weigh in on this strategy and tell me if it will work:
Purchase properties using Hard Money Lenders. Upon rehab completion, refinance into a 30 year fixed using the equity in the property to act as my leverage. Pay off the Hard Money Lender. Cash Flow the property with Renters. Then use the rental income in the Gain column instead of the Loss Column to Repeat the steps to qualify for another 30 Year loan on the next property. Rinse and Repeat.
Is there a limit to how many times I can do this with Freddie and Fannie each year? I have a very good credit score and very little credit card debt so my credit is good. Will I be able to qualify for the loans at such a high frequency of acquiring several properties throughout the year using this strategy throughout the year or will I get stuck with the property and my Exit Strategy wont work?
Thanks everyone!!!
