Using Equity in your Home to Purchase an Investment Property

[South Paw]

Thats dope. You can still do some good things with 75k in the HELOC. Just remember when you are looking for the rental and crunching numbers that you will need to factor in a monthly payment back on that HELOC. Even with that, you should still be able to find a rental home that you can make money on without having a penny come out of your pocket. Just added monthly income, or use that extra to pay off that HELOC faster so you can purchase another property soon.

Either way, now you have options. Good luck

Yeah as I stated above the current home we're in can cash flow almost 1k per month from what I'm looking at so we can def use that to pay back the HELOC we use for the down payment. Just a matter of finding the right property.

 

[Amerikan Melanin]

Went back and talk to the bank today w/ all my docs. Was trying to get up to the max possible which was 75% of our equity which would of been 230K. Due to credit and everything they came back with only being willing to do 75K but the HELOC isn't approved but in review status. Our debt to income is close but still within the standards so it should be able to get approved I'm hoping. That amount is definitely enough to get started w/ a first rental property especially if we can get an FHA loan. Our current place is FHA but just in my name so I think I may be able to get the rental property in just my wife's name. If not I know there are other loans/financing available where I won't have to put 20% down.

We'll see how it goes.

Word of advice. You can do this but according to FHA regulations you are supposed to live in the home you acquire an FHA loan for at least a year. If you don’t your are committing mortgage fraud. Tread carefully.

you can get a conventional loan at 10% down also. Don’t fukk up.

 

[South Paw]

Word of advice. You can do this but according to FHA regulations you are supposed to live in the home you acquire an FHA loan for at least a year. If you don’t your are committing mortgage fraud. Tread carefully.

you can get a conventional loan at 10% down also. Don’t fukk up.

Yeah I know this. We have lived in our current house for 12 years (FHA). If we house hacked we would go live there for a least a year. I know that people has lied and ended up caught up so that's what we would do.

I also see people talking about USDA loans at 5% down also. trying to look into that.

 

[Amerikan Melanin]

Yeah I know this. We have lived in our current house for 12 years (FHA). If we house hacked we would go live there for a least a year. I know that people has lied and ended up caught up so that's what we would do.

I also see people talking about USDA loans at 5% down also. trying to look into that.

you aren’t gonna get a usda loan unless it’s a farm. You doing the right thing with the house hack. The new place a multifamily?

 

[South Paw]

you aren’t gonna get a usda loan unless it’s a farm. You doing the right thing with the house hack. The new place a multifamily?

Yeah that's the plan for a multifamily and stay in it a year

Our current house is single family

 

[OfTheCross]

Went back and talk to the bank today w/ all my docs. Was trying to get up to the max possible which was 75% of our equity which would of been 230K. Due to credit and everything they came back with only being willing to do 75K but the HELOC isn't approved but in review status. Our debt to income is close but still within the standards so it should be able to get approved I'm hoping. That amount is definitely enough to get started w/ a first rental property especially if we can get an FHA loan. Our current place is FHA but just in my name so I think I may be able to get the rental property in just my wife's name. If not I know there are other loans/financing available where I won't have to put 20% down.

We'll see how it goes.

Dope shyt.

The FHA thing isn't an issue. Don't get stuck on that. Many banks offer in-house loans that are similar.