Other issues - What is securing the construction loan. 

Hi my bp family .I'm getting ready to start in the real estate world ,I'm going to lay out my plans with you guys an hopefully get some positive feedback .i own a home that's free an clear an getting ready to finish my basement an have it rent out with plans in pulling out a equity or heloc an have the proceeds from the basement unit to cover the expenses which I plan then too invest a portion from the equity on a multi family also I forgot to mention the basement unit will be legit as far as the plan goes I plan to rinse an repeat this method any suggestions,or am I  missing something your thoughts will be gladly appreciated 

Our goal is to secure properties (amount tbd) to help supplement our retirement.

Previously, my method has been to purchase homes and hold/rent with healthy cash flow.

Lesson learned about the lockbox and getting a security system we can take to all properties after it’s sold or rented.

If all fails and collapses, you want to have a place to live that you feel secure in.

Use extra screws to secure the cabinet to the wall even better.

Maybe there are statistical models that predict C% loans getting paid off in full & sooner more frequently than D%, so Wall Street pays a premium for mortgage  backed securities with more of D% in it, which is passed onto the consumer in the form of D% being offered for merely 0.3 more than C%.

I have done this with several properties and haven't had an issues using this method. 

I do have his first month’s rent and one month’s security deposit.