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Eric Rich
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Using HELOC with poor W2 income to keep business rolling

Eric Rich
Posted Nov 2 2022, 14:16

I'm the owner of two single family homes in Salt Lake City. I quit my job and am essentially living off of the rental income from my home (I moved into a workshop on the property and rent out 8 bedrooms and another workshop on the property). I bring in $5590/mo. on my primary residence. After I pay all the bills associated with the house and the mortgage I am now at $2,990/mo. I have a private lender on my other house with a 10 year balloon, so I'm not cash flowing on it at all, but it will be paid off in 7 years. I bring in $5,625/mo on that property. Very good assets, but both of these houses I was just really lucky on. How do I take my $130,000 HELOC and keep moving forward. I feel stuck and have in my mind that the only option going forward is paying cash for something because of the lack of W-2 work. I co-signed originally with my Dad on my original mortgage and have a private lender for my second. It doesn't look too good for conventional loans. What other loan options are out there me to look into so that I could make the most out of the liquid available to me? I would love to use as little upfront for down payments on other properties, how can I do that with my situation? Thanks for the guidance!

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