Philadelphia, PA · Member since 2019 · 22 posts · 0 votes
Hi BP community. My grandfather is giving one of his properties,
which is free and clear of any mortgage or liens. I plan to possibly
rent the property and take out an HELOC or take out a mortgage on the property. I want to do this ASAP once the property is in my name, but not sure which process would be quicker to pull equity out the property?
Or are there any other suggestions, I am open to the best possible solution to pull out equity in the fastest time.
Also, the property is located in Phila. PA.
Thank you for your time and best of luck to everyone!!
Hey @Stelljes Tate, congrats on getting a property, that is a huge deal! In your situation, the biggest difference between a HELOC and a mortgage is going to be the interest rate and how the money is given to you. A mortgage is going to be in one lump sum with a lower interest rate and a HELOC is going to be like a credit card with a higher rate. Which is best depends on what type of project you are doing to do next. If you are going to flip, you might want to use a HELOC but if you are looking for a buy and hold, you will want the mortgage for the down payment. I wouldn't focus on which will be faster, you need to know what is going to be better in the long run. BTW, they will both take about a month.
Hi @Brad Hammond yes my plan is to do a flip to build up more cash for future rental properties, I assume my next step is to find a lender to help me with this process. Thanks for your input on this situation!