$40,000 in Equity ( what to do ) ?

Question

Good Evening,

I need some guidance and insight as to what my options are, and given my options , how best to capitalize on them for maximum benefit to me as a New and foreseeable  Investor :)

Here's a Rundown on the Property , as well as what I " Hope " to do .....

I Literally just closed and took ownership of this house (  as of Today )

It has $40,000 of immediate equity in it( Purchase price = $68,000 , and Appraised for $108,000 )

This property is my primary residence and is thus O.O.

My question(s) boil down to this.......  I am wondering if my Lender would be willing to loan me $20,000 , thus bringing my New loan to $88,000

Even if they were to loan me $20,000,they are still " Covered " in the form of being at an 80% LTV  ( 80% LTV x $108,000 appraised value = $ 86,000 .... Very close to a 80% LTV )

I am wanting to use this $20,000 to put 20% down  on a Distressed property that I have found , and to purchase it as an Investor ( so that I can Immediately repair it and start renting it Out )

What roadblocks if any can I expect to run into with my Lender ? Orrrr, will tis Look like a good and safe deal to them ( so therefore they will hopefully be more inclined to do it ) , because ..... even by them loaning me ( adding it to my loan ) $20,000 , they will still have the Max LTV cushion that most Lenders like to keep the selves at

Thanks so much . I really want to pursue and get this distressed property that I have just found, but don't have the money right now in Cash to put 20% down on it ...... This is why I'm hoping I have a good chance of my Lender lending me$20,000 )  :)

Thanks again everyone

Jeff S. · Answer

Even after a whole year, I applied for a HELOC and the "appraisal" came back exactly equal to my purchase price, despite the fact that I bought below market and it was a pretty "up" year.