Guidance for beginners looking to purchase 2nd property

Los Angeles County, California
Starting Out
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Guidance for beginners looking to purchase 2nd property

Aric Chavez
Member since 2025 · 1 post · 1 vote

Hi I just recently bought my first home last year in July of 2024, I would like to get in the real estate business. I just don’t know when is the right time to take money out of the house to purchase my next property. I do have credit card debt from the renovation of my home that I purchased would that effect taking money out of my home? Thank you guys

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  • David OjoPro Member
    MD · Member since 2024 · 58 posts · 26 votes
    9mo

    Hi Eric! Congrats on your new property. I for one am always wary about tapping into my home equity. I'd focus on strengthening my credit profile because there are other creative strategies you can use to generate capital for your next investment without tapping into your equity and even your personal funds.

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  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    9mo

    Congrats on the first home and wanting to level up—that momentum matters. Two tips: talk to a lender now about HELOC vs. cash‑out refi so you know seasoning rules and how your current credit card balances impact approval, and run the math to see if pulling equity still leaves you safe on payment and reserves.

    How much equity do you estimate you have, and are you aiming to buy your next place in the next 6–12 months or later?

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  • Juan YepesBusiness Member
    Lender · Miami, FL · Member since 2025 · 126 posts · 35 votes
    9mo

    @Aric Chavez if you have equity to tap into in your primary, you could use that to buy your first investment property. Or you could also tap into that equity to pay off the credit card debt used for rehab. The difference between credit card interest rate and HELOC interest rate could be significant and a good investment in itself. Happy to help you review options. Feel free to DM if you'd like.

    [email protected]
    Helm Mortgage Corp - Juan Yepes, Director5126 Reviews
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