Closed my 1st property ever. How can the equity help me now?

[Cody Barrett]

Sorry for the newbie question here... Just trying to figure out how I can use my 1st investment, being a (duplex), to help me grow and buy another property as soon as possible..

I closed on this property March 4, 2016.  I was working FT for Chase (now part time) and was approved for a 100k 30yr fixed investor loan w/ 25% down.  I borrowed from my 401(k) for $3,000 and used $22,000 in savings for downpayment and closing cost... I went PT. w/Chase so I could focus on real estate and get out of my banker role, hated my job terribly... anyway.... I now earn $900/month from the job if that helps with this issue. 

I also have zero expenses besides this mortgage payment.  Paid off car, don't pay insurance on it, and live with the parents for now to grow quicker.  Right now I am just sitting on reserves for my new investment as I save more money from my job and the new rental income being generated.  

----------> Goal is to buy another property (multi unit) ASAP but definitely by December 2016...

Current situation

- Purchase price: $89,900 

- Appraised: $100,000 without any renovations.  

- Loan amount: $67,100 

- Monthly payment: $631.25 

- Renovations in progress: Refinishing hardwood floors, updating kitchen and bathroom.  (5K)

So I am learning about LTV and creative financing. I bought Brandon's book on No or Low money down and I am taking the time to understand it thoroughly.

--------->   My Question: 

How much of that equity will an institution allow for me to tap into since I don't live in it? Can I use this equity in a private money deal somehow? Would a HELOC be the only way to use this property to help me finance my next deal?

lol I have been trying to learn so much these past 7 months and it is overwhelming haha but at least I got the first deal out of the way..... 

Thanks so much for reading all this, you all rock!

[Axel Ragnarsson]

Hey Cody, I was going to say what John said above me. I think you might need to force realize a bit more equity in the property before you can really utilize it. That being said, congrats on the buy!