Newsflash: Expand portfolio or generate more cash?

I have a house valued at approximately $300,000 with a $180,000 mortgage. The property generates a net cash flow of about $600 per month after expenses, and I have a $40,000 HELOC on the house that I haven’t used yet. Besides that, my liquid cash reserves are low. Should I use the HELOC funds (and possibly a business line of credit) to purchase another property using a DSCR loan, then focus on building up my cash reserves while paying down the HELOC as both properties generate cash flow? I’m struggling to assess my leverage risk, but I know I would have enough for the down payment and closing costs on a new property that would cash flow, leaving me with around $10,000 for emergency expenses, potentially more if I can secure a $50,000 business line of credit. I have access to places where I can live rent-free, which would allow me to pay down the HELOC and lines of credit more quickly during the cash flow process.

Read more at https://www.reddit.com/r/RealEstate/comments/1cvntry/expand_portfolio_or_generate_more_cash/?utm_source=ifttt

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