HELOC for a down payment on investment property?
Hi BP community!
My mortgage banker suggests that apply for a HELOC on my private house and use those funds for a down payment on a rental property (2-4 units) my goal is cash flow of 10% and appreciation with the rehab/fixes I put into the property. I have $200-300k equity depending on appraisal & am looking in the Long Island area for now with the intention of expanding to other markets (Durham NC).
I'm also looking to switch my old 401k and ira's into a SDIRA, which should get me $150k.
I want to get my finances in line so I can really start taking my analysis of properties seriously and make a move!
Any suggestions? Am I missing something? I feel that HML's as a newbie is not realistic since no one would want to lend to me.
Thanks so much!
Brgds, Tim