How Much Equity if any? Looking for deal #2

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I bought a property for 51K put 20% down and got a mortgage for 40.8K fixed 5.5% over 30 years. How much equity do I have in the property if any? The home appraised for 54K in December when I closed on it. Didn't need much work though just painted and replaced carpet downstairs so I only purchased a little below market value. Can I do a HELOC to use for a 2nd deal or is it wayyyyy to early for that? Or is there a way to get any of my initial money back out yet?

Thanks for the help in advance :)

It depends on what other funds you have and your W2 income. You might not have enough in that property for the loan to value but you might look at the income it generates and use that  plus your W2 to go for a loan. See Ben Leybovitch's free book on 20 ways to finanace a property. It is pretty creative. The book is a free download from his website and he has many blog posts on this site.

Keep moving forward. I am looking for my second deal as well.


The only real equity you presently have is the money you put down at purchase. When assessing a property for a HELOC the banks will not likely attribute full market value to the property and will only allow up to probably 80% of their assessed value as a HELOC.

We were looking into getting a HELOC recently. Our lender said they only do HELOCs on your primary residence. I'm sure there are other lenders who may do this on a investment property but I did not find one in my search. They look at how much your property will appraise for, subtract 20% because they want your to still have equity, then subtract your mortgage balance. What you are left with is what they would loan.