Using my equity to purchase deals

[JW Shields]

I have a property that was my home and changed to a rental when I was traveling for work.  I bought it as a foreclosure so I feel like I got a good deal.  I have around 100K equity in the property. I want to know what if any options I have to use the equity to buy property. I am looking to be a buy and hold investor.  Thanks for any advice. 

[Matt K.]

Don't waste your time with WellsFargo..... 

Option A) do a heloc (local bank or Penfed will be your best bet) and then buy a house cash. Once you get the next house, do delayed financing to pull the money back out (up to 80% appraised value sans closing costs) and convert it to a traditional 30 yr note. You'd basically max out HELOC then pay it off once the delayed financing went through.

Option B) do a cash out refi and use the cash same way. This time you'd just get cash back no HELOC to pay off.... BUT your primary mortgage will be higher. You'll also have closing costs to do this.

You can do either option till the banks won't cut you new loans or you have a total of 10 loans outstanding.