Financial Leverage Advice
Hey fellow Real Estate professionals. Looking for some financial advice here so would appreciate any info from the community.
Current Job Situation:
- Full time 40 hrs a week employee
- Part time real estate investor
- Plan on moving to full time real estate 1st quarter 2020
Finances:
- I’ve saved my whole life so I landed to own 6 properties debt free
- I have a HELOC out @5% for 180K on my primary residence that I used to purchase another investment property outright. (No plans on paying off anytime soon)
- No mortgages or debt
- Credit score 790
Problem:
- I am looking to most effectively leverage my debt after I quit my full time job next year and go full time into real estate. I am looking to flip homes so I'll need access to capital quick when deals come up. That is the reason why I have my current HELOC loan
- How should I use my current income to get out as much access to money as I can before I quit?
- Some ideas that I’ve kicked around are:
- Leverage my other homes for more HELOCS. The HELOC rates on a investment property are in the 7.75-8% range so I cringe when I hear that.
- Get a mortgage out on the home I currently have a HELOC out on at a fixed lower rate. This would free up my HELOC to be used on another property. I'm not sure what this process is called though?
- Get a mortgage out on another property I have which I own outright. I am also not sure what this would be called?
Again, any help on what I should be doing in the upcoming 6 months would be very much appreciated!