Question on the viability of a strategy I've been thinking about.
Hello everyone! For those who don't know I am a new investor working on acquiring my first property before the year is out. I don't have much capital to work with, although I'm saving as much as I can while working full time.
Initially, my plan was to use an fha loan to buy my first rental property and owner occupy. Unfortunately most of the houses I have seen in my price range so far while inexpensive, have enough issues to make them un-rentable. This got me thinking however...
I'm curious, how viable of a strategy would it be to buy a house that needs work and fix it up with the fha 203k loan instead, then take out a heloc for the value you've built up by doing the necessary work on the property and potentially using the money from the heloc for a down payment for a second rental property?