Updated about 4 years ago on . Most recent reply
New investor - HELOCs
I own a house and have taken out a HELOC of 65k . I am struggling to find a strategy that works. I have been looking to buy a rental house for 50k that needs no significant repair in Hattiesburg MS. Is this worth it and where do I go from there? I would like more properties but I don't know how best to use the money I have available. Also, I don't live in Hattiesburg and I am renting out the house I own. TIA
Most Popular Reply
If the plan is to buy a $50k property with the HELOC and then do a BRRRR and later refinance into a traditional mortgage, it'd be a good idea to talk to lenders up front and line one up who can do the refi on a property at that price point. While there are lenders who will do loans that low, there aren't many. And you don't want to get into this deal and then realize too late that you can't refi out of it if that's your plan.