My husband and I are totally new at all of this. We haven't yet stepped out into taking action, but are close.
We don't have cash funds available for RE investing, yet. We recently set up a HELOC as a way to have some access to cash but it's not a lot.
Yesterday, I reached out to our mortgage company to inquire about equity cash through refinance. My concern is whether or not this is truly a smart move to take.
1) Fees for refi. are incredibly expensive. $8200 just to get access to about $18000 in cash. 2) Our monthly mortgage payment will go up, obviously. We live paycheck to paycheck, so this will have an impact.
Advice? Suggestions? Options?
So appreciate your time and help!
@Christina Meitzler get your financial house in order. If you are living paycheck to paycheck what happens if your HVAC goes out for $5000. If you have credit card start paying them off. Guarantee return of 18-24 %. Most real estate does not do that well.
@Christina Meitzler My opinion is NOT to tap into a HELOC for investing, especially if current monthly cash flow VS income is tight. Either wait until you have the cash to cover the parts that may not be financed by a real estate investor lender, or search out a financial partner to provide the cash needed. Even if you grabbed a great deal on an investment property, if it puts you in financial dire straights - its not worth it.
Thank you!!! Makes sense!!!!