Updated about 7 years ago on . Most recent reply
Need Advice on next step
Hello All,
We have a unique situation and I would like to get your opinions. We decided last year to move out of California and decided to move to Indiana so we went on the hunt and purchase an off market deal that was being sold under value. Since we could not move till this year we rented it out on a year lease. Now our plan is to keep our house in California as a rental. Our house in California has a loan on it for $220k but is worth about $600k and since we are still owner occupying it we are thinking of pulling out a HELOC on it so that we can use the money to purchase a couple for rental properties once we get back to Indiana or just have it available for any major future problems. We still have our jobs and look good on paper as borrowers but when we move back to Indiana we will be looking for work.
My question is the HELOC a good idea or should we do a cash out refi. or do you recommend something else.
Most Popular Reply
@Tiana Engstrom yes the HELOC is definitely an option, however, if you're property here in California is not going to get decent appreciation over the next few years and if it will not cash flow then the equity built up is not really working in your favor.
You'll be able to get approximately $100k of a HELOC on your property which is good, however, could you use the approximate $350k of equity in a better way? I would say yes.