Personal FHA or Family's HELOC?
I want to become a real estate investor. This is my story. So far 2019 has not been very kind in terms of looking for a 2 family home here in NYC.
I work as an engineer in construction. Stable job, stable income. I need a place of my own soon.
I've been pre-approved for $625k (can be pushed higher says the loan officer, depending on location and rental income). My intention was to "house hack" with rental income and put down 5% and pay PMI. I am also paying mortgage for my mothers 1 family which also has tenants paying rent (not reported). From my own research I've come to learn that it's quite possible for me to apply for a HELOC on her property for 550k+ (I do not live on this property). Naturally I sat down with my family and explained these options and they are comfortable with anything that I choose.
What did I want to do 7 months ago? 5% down + PMI, live ALMOST for free within 5 boroughs of NY and take it from there. Reality, good deals get scooped up too quick and overbid for the #'s to not make sense. This is also considering living in a basement or taking the risk renting it.
Current thoughts as of tonight. If I were to find a way to utilize this HELOC I "FEEL" I would find it much easier to purchase a home under market asking price (short sale, foreclosure, wholesalers, etc), fix it, refinance it, and pay back the HELOC. The "BRRR" strategy.
This has been an ongoing battle in my mind for quite some time now. I appreciate all those who have read this through to the end. All comments, opinions and thoughts no matter how harsh are welcome and highly appreciated.
Thank you Biggerpockets Community for providing an outlet for someone like me who knows nothing but wants to know everything.