1st Time Investment Property Buyer, down payment funding question
Hello,
I live in Burbank, CA and I am looking to purchase a triplex or fourplex property. I am having a hard time trying to make sense of how to use my available funds in the most efficient way possible.
Morgan Stanley client services has provided me a line of credit against my investments. I want to use this line of credit to fund the 20% down and Rehab of a property. the line of credit is estimated $418K
example: multi-family house costs $700,000.00
20% down payment is $140,000.00
Rehab where possible, paint, new rugs, maybe new appliances to update the experience for the tenants. $10K -$15K
Mortgage loan estimate amount is $560,000.00
-at some point I will need to get an updated appraisal of the property with the update value -
After Appraisal assuming the updates improve the value of the property, I would refinance to a new loan.
the new loan amount would need to be at Least $700,000.00 to cover the original loan amount and to allow me to repay my line of credit.
is that correct? however with his higher loan amount, wont I destroy any cash flow I would have had when the loan was $560,000.00?