Investor looking to get into Real Estate. Question:

[unacunac]

I have been pretty successful in other business ventures, Salon Chain, Marketing Company, and other small investments.  I currently make a comfortable income each month and want to start diversifying.

I was thinking about putting $20k a month towards properties.  My first property being a rental.  Can you give me feed back, let me know if this makes sense:

Get a mortgage for $150k - 30% down.  Pay off each month at 20k.  Once paid off, take out a equity credit or another loan using the equity of the first investment property.  Each property would be a rental to cover the cost of rent.

I feel like besides a bit of a down payment on each property - I could continue taking that $130k-150k in equity and continue buying property, eventually having 10-15 properties?   Is this a correct assumption?

Is this a viable way to enter into the market?

Thanks
 

[ChuckFromMichigan]

Depends....what market are you in?? 

[unacunac]

Depends....what market are you in?? 

Market being? I'm based in San Diego - the rental market is pretty strong.  If I'm off base with my reply, let me know.

[ChuckFromMichigan]

its cool.. i think you could do it. just factor in all your expenses and how much you want to cashflow if you search through the forums you'll find theres a certain formula you can use to see if its a good investment... im by far no heavy weight in real estate and currently my specialty isnt landlording but i sell to alot of them and there are some great ones on here that well guide you to greatness just ask away at your questions and look through old ones for your answers..   

[ChuckFromMichigan]

another thing look into lease option's and sub to's they are a more cheaper approach to acquiring properties as well especially if you can shell out 20k a month you would make a killing...

[acoleman56]

Sounds good. If you have the mindset of a wholesaler you can get deal with no money down and even get paid to buy rentals also.