This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Initially, I though I could only get 3 lots out of the land, but after some research and some luck I was able to subdivide the lots into 4 separate lots.

The demand for vacation rentals in places like Destin, 30A, and Panama City Beach remains strong.

Build a strong team of local agents, property managers, and contractors, and reinvest profits to grow your portfolio.

@Surya S KumaresanYou're in a great position to grow your real estate portfolio in Atlanta, a market with strong appreciation and rental demand.

I encourage you to define your financial goals, as real estate presents numerous possibilities.Building a strong foundation of knowledge and connections can significantly impact your success in real estate investing.

@Vince Scipione  This is very solid advice to keep it separate and I agree with you, the only reason I was even thinking of it was to help me raise the initial funds for my first investment.

Quote from @Mark Sullivan: Quote from @Tim Delaney: One missing piece of info here is how much cash you have available to invest at the moment.My initial thought was sell LLC B and hopefully you have a few hundred thousand available on top of that to buy the new building.

It actually went to auction initially on the 8th but no bidders except the starting bid which I believe was the bank.

They’ll have a deep understanding of the market and a strong network, which can help you identify the best opportunities.Owning rental property isn’t as simple as it might seem.