I still own my primary, and within the next year I plan on purchasing another primary and utilizing the strategy that helped me build my portfolio early on.  

If you do find someone to give you a loan (secured or unsecured) think about the exit strategy, cash flow and time frame you agreed to.

What does the BP community think is a better strategy right now?

What is your strategy for maximizing its potential? 

Is using a HELOC for purchasing and then refinancing a viable strategy, or does the impact on DTI make it less feasible?

Hi Jordi - confirming some of the numbers above for DSCR loans, generally maximum LTV for a cash out is 75% LTV, a rate and term refinance could go up to 80%, maybe 85% depending on the seasoning and rental strategy. 

There are a number of strategies, terminology, and market factors to understand.

The only issue is based on my research once I pay off most of my debts and save up some money I'm not sure where to start.Since I'm not able to save up $10K plus to buy a rental I am looking at for alternative investment strategies to help build up my initial investment (ideally $30K-$40K).  

The first tax benefit of real estate is that the cash-flow and appreciation grow tax free(in general).Cash flow will likely be offset by depreciation and appreciation is not taxed.If you are making 8% on real estate(combined cash flow and appreciation), you money will double  in 9 years.If you make 12% on real estate, your money will double in 6 years.There are other strategies in real estate(time involved in real estate) where you can create 'paper-losses' to decrease your W-2 wages, interest, dividends.I normally don't like this route too much as I think people can focus their time and attention more on other tasks that can generate a higher hourly return.Best of luck.

Is this a reasonable strategy?