All Forum Posts by: Wally Freitag

I just bought my first rental property in January. I already had a really stable renter set up before I even started looking for a property. I really want to try and buy two more rentals in the next year but I'm having some questions on the best way to get there. I have some capital put up but not enough for a down payment yet. However, I do have 75K in equity in the house I live in and it's also ripe to rent out and make $550 a month above mortgage, taxes, insurance, etc.

I feel like it's more than sensible to take a HELOC or equity loan and get rolling on the next one. Anyone have any feedback or things I should be considering in making that move? Things I should make sure I don't overlook?

I found a 2 unit that does need a little work but has solid basics and solid tenants. The housing market in my area is over inflated in price by about 15K or so making the house a little more than what I would normally spend for it. The monthly expenses on the house would be about $925 and it rents for $1360 generating about $425 a month. 

I make a good living so I don't need any of the money so it could be used to save for the next house or upgrades. I'm looking at keeping it long term as a rental and another form of retirement safety net. My realtor and father felt the price was a bit high (which it is) but you rarely see a duplex going at an affordable price in this condition in my area. It will be my first unit so I'm inclined to buy it since they don't come up often and there is profitability in it. Foolish or jump in and start looking for the next house?