Updated about 6 years ago on . Most recent reply
How would you move forward?
Looking for suggestions on how to invest in my current situation.
I have 2 SFH free and clear, each is roughly valued @ 300k. One is a rental the other is my primary residence. Have a good credit score and am interested in utilizing a HELOC to help purchase another buy and hold rental...either a duplex or 4plex.
(Duplexes are roughly 350-450k and 4plex's are closer to 600k in my market)
If I use a HELOC for the down payment, should I put the rental income towards the mortgage and the cash flow towards the HELOC? Open to any and all suggestions. Thanks! :)
Most Popular Reply
@Matt Duprel
I have used my HELOCS for down payments, rehab costs, and/or entire purchases as "cash" quick close. I have most leveraged my HELOC many times when I find a deal out there. It is interest only through KeyBank, 15 year draw period, prime minus .25% on rate, 90% LTV. It was the best terms I could find out there. I used to deal with B of A for a decade and it was easy to get HELOCS on my non owner occupied units, until 2008 hit and they pulled back and cancelled all of my 2nds out there. It was a West coast decision and had nothing to do with me or my payment history. I hope this helps!