How I Buy Investment Properties with Only Collateral

I have  over the years  listened to the experts and relevant investment clubs and tailored the theory to our needs. I have always had a desire to buy investment properties but my partner has always been extremely hard to jump in, which in hindsight is a good thing, the slower he is the more i have to have my facts straight. I am a woman and i love shopping.

The idea is and probably is for most investors to refinance their house, raise some collateral to purchase another house. Do some research and buy were the rent and capital growth is good. This takes probably about 6 months or that is what it has taken me as i buy interstate. The reason for this is my area is out of our reach and the rent does not come close to meeting the mortgage.

So get finance approval first, what we did was refinance our house and split the loan up, find a finance company that will let you refinance your family home on interest only. The reason for this is we plan to pay out our mortgage in 10 years with the investment property sales. There is no need to pay it off faster, however with the lower interest rates we are doing that any case.

so Refinance your house at interest only repayments, frees up income.

Split your loan up , we split ours 3 ways, normal homeloan , then $65k investment monies, then $50k renovation monies. Now with the investment monies we put the deposits down etc and pay for stamp duty etc. Also from this loan all the rent goes  and the mortgage comes out of it also. so we can see what comes in and what goes out.

Next we purchase a property with another loan and ensure they deduct the mortgage from the investment account. This way we are not needed to pay anything extra. It is great to have an account like this also so if there is no tennant for a couple of weeks etc, it is still taken care of.

We are not on big incomes and it has worked fine for us, in fact we are in the middle of refinancing our investment property and purchasing another one. From now on we will only refinance the investment properties and not our own home. Any extra funds from the refinancing will go into this account and both investment mortgages will get taken from it. etc

We have factored also into that for it to be depleted completely would take roughly around 5 years at the 8% interest mark and in this time rent should have increased so it should not deplete in that time either.

In 10 years we will sell two of our investments assuming also we have purchased several more by then and pay our own home loan out. Much better than 20- 30 years. Who knows it might be paid out in fewer than that.