Flipper/Rehabber · Charlotte, NC · Member since 2019 · 5 posts · 0 votes
My wife and I did a live in flip on our first house and sold that house for a bank owned property.
That was 5 years ago and we have about $250k in equity in this home after rehab and appreciation. We are talking about purchasing another distressed property and flipping that.
Flipper/Rehabber · Farmville, VA · Member since 2018 · 280 posts · 171 votes
6y
Yes. However if I was in your shoes with $250k in equity I would be looking at a refinance on my primary residence or a HELOC and purchasing an investment property in cash. I don't see the point in paying 20% down on an investment property while sitting on that much cash.
Real Estate Agent · Mukilteo, WA · Member since 2018 · 124 posts · 148 votes
6y
Yes you can and like Ben said, a HELOC is a great tool! I have around 280k in equity in my primary residence and used my HELOC to purchase a rental property in full.
The main thing that limits how many mortgages you can have is your debt to income ratio. So the bank will only let you borrow so much money, that may be $500K as a single mortgage or as 5 mortgages each for $100K. I think there might be a max number of mortgages (something like 10).
Flipper/Rehabber · Farmville, VA · Member since 2018 · 280 posts · 171 votes
6y
@Craig Huston I don' think it matters. I would go where you can get the best rate. A cash out refinance might give you plenty of money in the future without paying the interest on a HELOC.