Using 2 HELOC's to Purchase my Next Rental Property?
Hello,
My name is Cameron Jensen. I am a newer investor from UT. Big fan of the podcast, and I'm excited to continue with my Real Estate journey. My wife and I moved out of our primary residence a few months ago into a duplex so that we could house hack the property. We rented out our first house, and we currently have tenants that rent out the other unit and they are completely paying for the mortgage, so we are living rent/mortgage free! (Yay!) It has been super nice and has been a great way to get started with Real Estate.
We are looking to buy another rental property, preferably a duplex or triplex. The Brrrr strategy sounds intriguing and it is how we want to go about doing our next deal. Since cash is king when it comes to getting properties at a discount, we are trying to find different ways to pay for the property all cash (most duplexes in my area go for around $300K). We have about $80K in equity from our previous house and about $44K in equity from our current home. I just started looking into using a HELOC to purchase our next rental property and I have a few questions about it that I have not been able to find elsewhere.
1.) Can we get a HELOC on our rental property AND our primary residence?
2.) Can I go to a local Credit Union to get a HELOC for both or one of the properties? Or do I have to go to the bank that I have the mortgages with already to get the HELOC?
3.) If I am able to get a HELOC from both properties, (I know you can only take anywhere from 80-90% out, so that would give me around $105,400 as a HELOC) and I have the difference of cash ($194,600 if I was basing it off of a $300K purchase price) from a private money lender, can I pay all cash on a property using three different payment types (2 HELOCs and the rest from the private lender) Or does it get complicated when you try to use more than one way? (Hopefully this last question makes sense)
Any comment or help would be much appreciated. Thanks!