Hello all! I am new to the investing world and I'm hoping I can be set in the right direction. I am looking into purchasing my first multi-family property. I currently have equity in my own home and wanted to obtain a HELOC from that home to purchase the multi-family. The problem is, the HELOC will not be enough to cover the cost of the property. In this case, would it be wise to get an additional loan to cover the remainder of the property or wait until I am able to save up enough money on my own?
What sized multi-family are you talking about? Depending on the size and your confidence in its ability to generate profit you could consider finding a partner to cover what you can't finance. Note: I'm rather conservative in my decisions, so personally I'm more comfortable taking a smaller piece and not having to worry about stretching my credit too thin.
Are you saying you want to save up enough to pay the entire price with cash? There is nothing wrong with that but that is not the typical way to buy investment real estate and you lose the advantage of leverage.
The are so many questions you have left unanswered. How large a building are you taking about? What kind of credit do you have. How much an how fast can you save. What are you goals? What is your risk tolerance? Why multi family? Since you are new you may not even know the answers to these questions yet.
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@Shereeka Hardaway I see it is your first post Welcome to BP