All Forum Posts by: Sam LaCroce

Thanks Jeff and I don't want the money to just sit there and do nothing so I thought real estate would be a good idea. But overall, is that good strategy? Keeping the large cash account liquid and have HELOC loans with tenants. I feel like it would work. Just would like to know other investors have done something similar.

Well my plan is to repeat the process to build a portfolio. For example, use the line of credit to purchase a home in cash to take advantage of the discounts (closing cost, etc.). Then, repair what is needed and rent it out. Once finished, apply for a HELOC loan to pay for the portfolio line of credit. Paying off the portfolio line of credit will allow to me have $120,000 in the bank.

Then, repeat the process to buy home number 2 and so on, but this now leads me to more questions. How many HELOC loans can one have? As in RE investor, is it safe to hold so many HELOC's even though you may have tenants for cash flow and a job?

Is this a common scenario?

Three houses have their own HELOC with $600 a month to owe on each. All three houses have tenants that pay rent of $1200. The extra cash flow received from house two and three would flow into the first HELOC loan to pay that off quicker. Once that is paid off, then the extra cash flow can go into the second HELOC and so on.

Buying property to rent is correct.

Thanks for looking at my post.

Yes I do qualify, however, I wasn't if that the best move v.s. the line of credit idea. Also, I do have a job and have been working for 6 years now.

So you're saying put money down (20% or less) and have the mortgage. The additional income received from rent would pay for the mortgage.

What if I can pay the HELOC within 5 years?

I am new to this forum and I apologize in advance for not knowing enough about real estate investing but I am intrigued. I have a question and am looking for some feedback (advantages or disadvantages).

I am 29 years old and have no debt obligations. I have $120,000 in a fund with a local bank and want to use this money to become more involved in real estate.

My local bank does offer a portfolio line of credit. I was going to use this as collateral and purchase a home. After, I would like to get a HELOC loan and pay off the portfolio line of credit loan. I want to pay off the original loan off with the HELOC because the interest rate is higher on a portfolio line of credit.

Is this a bad idea? I plan on renting out the house for additional income. Any advice would help. Thank you.