Updated 3 months ago on . Most recent reply
New real estate investor
Hello, looking for advice.
I have $100,000 in a HELOC secured. It is an adjustable interest only heloc for the first 15 years then switches to a 10 year fixed rate. Interest rate is 7%
My original thoughts were partner with a fellow agent who is actively doing flips with a small crew doing 2-3 flips per year. The pay structure agreement to him would be buyer agent fees, seller agent fees, and 50/50 for managing the flip. Does not take a salary or a percentage during the flip for managing. Pays the crew he has from the draw schedule.
Or...
Would it be in my benefit to buy 1-2 houses paying 20-25% down and using those houses for either mid term rentals or long term rentals? If I chose to buy (2) houses worth $200,000 each I would spend $80,000 in down payments alone.
$80,000 x (0.07/365) = 15.34 per day
$15.34 x 30 days = $460.27 per month back to the heloc not paying anything down on the principal of the heloc.
I am trying to get into real estate investing I just don't want to get in over my head before I ever get started.