Hello Everyone,
My name is Mike and I took the rental property investment plunge at the end of last year. I bought a triplex with some great cash flow and recently purchased another huge duplex a couple months ago. I'm using the equity (HELOC) in my house to purchase these houses and putting 20% down. Then I renovate them and refinance to pull the sweat equity back out to pay off the HELOC on my principal residence, thus increasing the mortgages on the rental properties but getting as much of my money back as I can.
My question is, how can I move forward without hitting the debt ratio ceiling? Is putting these houses in a corporation the answer? I know I could probably get away with one more rental property but after that I will not have any more borrowing power. Any feedback would be great as its the only thing I haven't quite figured out.
Thank you very much,
Mike
My name is Mike and I took the rental property investment plunge at the end of last year. I bought a triplex with some great cash flow and recently purchased another huge duplex a couple months ago. I'm using the equity (HELOC) in my house to purchase these houses and putting 20% down. Then I renovate them and refinance to pull the sweat equity back out to pay off the HELOC on my principal residence, thus increasing the mortgages on the rental properties but getting as much of my money back as I can.
My question is, how can I move forward without hitting the debt ratio ceiling? Is putting these houses in a corporation the answer? I know I could probably get away with one more rental property but after that I will not have any more borrowing power. Any feedback would be great as its the only thing I haven't quite figured out.
Thank you very much,
Mike