Leverage is great from HELOC, but you want to accumulate more and more equity and try to use 25-50% of the equity at most to get a property so you don't collapse your entire value in what you own.

My goal is accumulate properties while I’m still living at home, to eventually be able to fund building my own house with the cash flow from the properties.

The covered parking area and patios should have adequate drainage to prevent water accumulation and potential damage.Investment ForecastPurchase Price: $849,900Total NOI over 10 years: $308,782.13Year 10 Value: $1,256,336 (based on a conservative 4% appreciation rate)Annualized return: 6.30%ConclusionWhile this property is poised for appreciation, sustaining it over several years for substantial returns would require substantial financial resources due to high debt servicing costs and negative annual Cash on Cash (CoC) returns.

No rental assets yet, however, my plan is to accumulate the control of rental properties in various states.

At that time, the builder will pay the accumulated interest along with the principal.We have discussed a few different options to structure this arrangement, assuming an interest rate for interest-only loans with monthly payments is 10%:Option 1: delayed interest with a rate of 12% (interest rate is 2% higher)Option 2: charge a lower interest of 8% then profit share (need to determine appropriate % split)Any other thoughts on how to structure this arrangement?

Many of the most successful investors I know accumulate properties in areas of familiarity.

A few counties have in-person tax lien auctions, not through GovEase.com, but it is the same rules.Alabama tax lien investors can only accumulate the correct number of tax liens for the correct number of years and then file a lien foreclosure lawsuit.

Your gain on the rental property will beSales price less sales expenses less adjusted basis.Adjusted basis is purchase price plus improvements less accumulated depreciation.Best of luck.

As you mentioned, you can depreciate the improvement value over 27.5 years for residential property.So, to calculate the depreciation recapture after 5 years, you can use the following formula:Depreciation Recapture = (Original Improvement Value / Useful Life) x Accumulated Depreciation x Time HeldIn your example, it would be:Depreciation Recapture = ($200,000 / 27.5) x (5 years) = $36,364.36So, after 5 years, your accumulated depreciation is approximately $36,364.36.Now, when you sell the house for $400,000, the profit you'll have to consider for tax purposes would be:Profit = Selling Price - Adjusted BasisThe adjusted basis is the original purchase price minus the accumulated depreciation.

Should I have this established before purchasing a property, or accumulate it over time after making a purchase?