Aspiring real estate investor in Miami

4 Replies

hey BP!

I have been studying real estate for a few years now in an effort to decide which niche would fit my family's lifestyle. My plan is to invest in multi-unit properties starting with a duplex/ triplex.

I am currently AD Military and living in Miami where I own a home with some pretty solid equity. The home is on a double lot (.41 acres) near Miami international airport in the only part of Miami that feels like a small town.

I am leaning towards taking out a Heloc for a down payment on a duplex OR heloc, rehab the bathrooms and upgrade to hurricane-proof windows and then do a cash-out refi and use that as a down payment for a duplex. 

I am looking for some input and am happy to share more details on my situation if needed. thanks in advance.

-Sean

Hi Sean, 

I like your plan. It makes sense. Not sure how much equity you can tap into but your plans seems to be the right path forward. Feel free to reach out if you have any specific question. 

Kind Regards,

Mehdi

Hey @Sean Gradin

Personally I think a HELOC isn't a favorable option unless you plan to constantly use the money.

If you only plan to pull out money once I think it is way more favorable to do a cash-out refi from the beginning. Better to lock in a fixed rate than an adjustable one that relies on the prime index. 

You said you already have some solid equity, is it not enough for a down payment? The lenders I know allow you to pull out up to 80% of the property value with a cash-out refi; with $100,000 down you can buy a great cash flowing MFH in Miami. 


Feel free to reach out if I am missing any details, happy to answer more questions!

thanks for the responses. 

I do have enough equity for a down payment but I was leaning towards taking the Heloc to make upgrades in my house and then get a higher appraisal then cash-out refi. I then would use the re-fi money to pay off the Heloc and use the rest for investment capital. 

I dont know if this is like asking a fisherman for their fishing spot, but what part of Miami is your market??