Looking for financial ideas with a recently purchased SFH in OH

[Michael Brockett]

Hello everyone,

I am looking for any input or ideas y’all can throw at me, as I will be completely open here:

I have recently (3 weeks ago) purchased a single family home (rental property)  in Akron Ohio for $39900. It appraised at $50,000 (woohoo) so I have built in equity. With 15% down, I currently owe $33915 on it. Which leaves me with $16085 in equity. I would like to take out a line of credit/refinance so I can purchase another unit, if possible. I am however running into roadblocks. All of the lenders I’ve talked to have minimum for lines of credit (10k, or 25k etc), with maximums of 75% - 80% in home value. Recency is a roadblock as well when it comes to refinancing. 

Does anyone have any suggestions or ideas of lenders with lower minimums or higher percentages? Or is it simply too soon/not enough equity to be pursuing this?

Thank you,

Mike

[Marc Winter]

Let's look at the numbers:  $50k appraisal x 80% = $40k.  You owe about $34K.  $6k room for line?  Nope, sorry, that doesn't fit into your box. 

Let's look at some items outside that box.  Use cash, just not your own.  Seller financing, partner, hard money on the buy, on and on go the options.

It's the DEAL that makes the money, not the other way around.  If you come up with a great deal, let the right folks know about it, you'll have no problem in getting financing.

Good luck!