Updated over 3 years ago on . Most recent reply
Second Investment Property
Hey everyone! I am a somewhat new investor, but longtime reader of this site/listener of the podcast. I've been househacking a duplex for about a year now in Keansburg, NJ (purchased last December) and was looking to purchase a second investment or purchase a flip house. My thinking was that I'd take a HELOC out on the property I live in now and use those funds for a down payment on the next investment (be it a flip or rental). I applied for a HELOC with Affinity, but was denied because the house does not have enough equity in it. That said, I'm a bit stumped on my next move. I know tons of people on this site have been in my shoes and was looking for any advice you all can offer! Thanks in advance!
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@Giovanni DiBlasio - what does your income look like? Is your limiting factor a 25% down payment? Besides a heloc, you can also explore a cash out refinance. They will usually give you 80% - balance of your other mortgage - closing costs 4-8k including prepaid taxes.
You can always try creative financing like driving for dollars or cold calling to connect directly with motivated sellers who own their properties free and clear, or have a mortgage they want to walk away from, and you can buy on selling financing (you pay this person like you would pay a bank) or subject to their existing mortgage, there are lots of books about this, but my favorite personality is pace Morby who has a great YouTube channel and now also an a&e show triple digit flip