Have 100-120k in equity in my current home which is the first home I bought. I plan to take a HELOC out and turn it into a rental while we build another home. (Plan to live for a 2-3 years and then turn into another rental.) Right now my mortgage, taxes and insurance are $860/month and similar homes have rented in my neighborhood for north of 1600/month. My plan is the renters would be able to cover the mortgage, utilities and HELOC cost and I would be able to basically use that money to start building equity in a new home while simultaneously paying down my current home. Any advice against this or alternative ideas? And if anyone has had good luck with certain HELOC lenders I would appreciate the advice. Thank you and god bless 🙌🏻
I would go with a local bank or credit union are the best for lower interest rates.