Good morning bigger pockets members! I have a question or two that i have been going back and forth on and cant seem to find the best way to tackle it so here it goes. I am going to get into real estate investing and want to aim to buy 3-4 multi family units in the course of 1 year. That is my early New Years resolution to myself. The issues that I am finding myself stuck in and overthinking are how exactly to fund this the proper way. My options that I am considering are either getting a HELOC and using that money to fund the 25% down that I need on the rental and use the BRRR method or refinancing my current home and using the equity to get the same process done. Problem i'm having is I would really rather not wrap my primary home up in my investments if i don't have to. So are there any other options to look into that wont require me to tie up my primary residence? I Have heard of some kind of HELOC based off of your credit score and not your house but cant seem to find much on the subject.
I'm planning on doing the same thing. The way I see it if don't over stretch your finances and have some reserves you should be fine with the Heloc on your primary. Again, just makes sure you are being conservative with your analysis and are making good cash flow. Also have 2-3 exit strategies
Agreed as far as having some reserves. Can you elaborate a little more as far as some good exit strategies to have in place just in case. Also when using a HELOC for example say I use the money as the 25% down then maybe do some repairs if needed. How long until I can do i refi on the home? is there a specific period like a year or can it be immediate? In my head I figure if you can buy the property fix it then refi and pay off HELOC
That's what I meant, refinancing out of the Heloc or sell if you have to.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.