All Forum Posts by: Travis Hester

Thanks for the response Jason. So it's possible they'll give me a LOC on the property that I buy. What do they base that off of, the equity in the property you just bought? What if it's a fixer upper that won't have any possible equity until after it is fixed up?

I'm wondering on what my next move can be. I'm wanting to scale my "business" into more properties or multifamily properties. I'm going to give you my situation, and let's see if anyone has any wisdom on this. 

So, I have 4 SFH properties. I've used the BRRRR method very well I think. Long story short, my first one is free and clear. I took a cash out refi on it, bought another property and fixed it up with all of the cash. Rented it out, and did another cash out refi on it and did the same for the next two.

Now, I'll wait until the 6 month period is up and I could do it again, but I really want to scale it up. I'm just not sure what the possibilities are. If I take a cash out refi on it and use it as a down payment for a small apartment complex for example I would have that mortgage payment, plus the mortgage payment on the apartment complex. Can that be profitable? I would think so, but then you're kind of stuck with the apartment complex and two mortgages with no way to cash out again. Right?

If I took the cash out refi and let's say I used it for down payments on 2 additional SFH I don't think I'd have the cash to fix them up with. Maybe, but no telling at this point. Then I'd be stuck with 3 mortgages, and no way to cash out again. Right?

I've done lots of reading and listening to podcast etc, and they talk about these things, but they don't talk about the fine details on how they actually made that happen. 

I hope this all makes sense, and maybe someone can help me get in the right direction here. Any help is greatly appreciated. 

So it may be better just to take out a secured loan on one of the new investment properties instead of using the equity in the one I've paid off?

I have an investment property that is mortgage free. I want to take the equity in this property and buy two more properties. 

My question is, if I use that equity I'll have a mortgage payment on the two new properties and then a home equity loan payment. Is that the way to do this, or is there a better way? Or should you refinance the new property mortgage to include the home equity loan? Or is that the same thing? If I'm not making any sense, please let me know. :) I'm just trying to figure out the best way to finance more investment properties. 

I'm new to the real estate game. I was wondering how to decide either to flip, or hold and rent a property? Is there a financial breaking point that determines this, or just personal preference? My thinking, for example, is say that you made 15k on a flip, compared to if you held and rented the property you would accumulate 15k in 2.5 years. So, if you held and rented the property for longer than 2.5 years, you would then make more money on the property than flipping it. Of course I'm not including vacancy, repair cost, etc but just trying to get opinions on if there may be a good formula that would help someone with this, or if it's just a matter of making a quick buck versus continuous steady income.