Hello - first a huge thank you to all the helpful folks on this forum. Thru numerous PMs and phone calls I'm closing in on my first deal.
My question is what financing strategy should I employ. My plan is to purchase another property this year by Sept 1.
-Asking price 86k
-completely remodeled and turn key
Assuming I have my HELOC loaded at 86k and pay cash for closing costs, I could effectively do an "all cash" purchase of this property. The question is would this be wise? Will I be able to refi this property and get my money back to put into a second property by Sept 1? Or Does it make more sense to finance this property instead at 80% and use my HELOC for DP. If I use this strategy I can reserve my HELOC for a second or third DP? I also have access to about 50k in cash that I am holding for reserves that I would rather keep there.
Finance it if you can. Banks get gun shy sometimes if you just got your heloc and turn around and and get a loan.
If your going to refi it anyway and not to a lot of improvement to the property to increase the property value just finance it from the start.
I'm having trouble finding a line of credit on investment property.
I can do a cash out refi not a problem.
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