Updated over 9 years ago on . Most recent reply
Need help with a situation I am in and if a HELCO is best.
Hello all, just need some help putting pieces together in what I am trying to accomplish. Here is the scenario.
Purchased a SFH in Sept. 2015 using a VA Loan - 30 Year Fixed/4.0 Interest Rate.
Purchase Price = $255,000
Downpayment = $50,000
Renovations = $30,000
Total = $285,000
Spoke to a realtor recently and after running comps he stated my home can sell for anywhere from $400,000-$425,000. He also stated if I want to rent out my current home I would be able to get between $2500-$2800 in rent per month.
My Goal = To acquire a 2nd property, preferably a 2-family under $300,000. In my market this type of house will probably be in a C class area. I want to then reuse the VA loan and live in 1 unit and rent out the other. Also rent out my primary residence that I live in now.
Options:
1) Wait the full 2 years to sell current home and avoid capital gains tax.
2) Keep home, rent it out and acquire 2nd property
3) If I decide to do number 2, VA Cash Out Refinance or HELCO?
Concern: If I get a HELCO for say $100,000. Then I use $50,000 of it for repairs on my next property and get it rent/move in ready. How would I be able to do the BRRRR strategy if I have to payback not only the HELCO but the mortgage on the new property and the primary residence I am living in now?