Using equity of one house to pay for another
Hey guys,
I am new to the forum but have a question I am buying a house in Washington on a lease term that by the end of (about 30-40 months) i will be paying the house in full cash (500k remaining); I have been finding some really great land purchase opportunities in Northern Cali. (Mendocino to Humboldt along the coast); I was thinking of during the time I am in the lease I should focus on building 1-2 houses on some land I can buy rather easily in full; then pay for a house to be built (I have developer and contractor connections) on the land for maybe 150k or so; and use the equity acquired from that or market value of the house to take out a HELOC to finish paying for my house in Washington; instead of me personally doing it all in cash. Then I own 2 homes out of that.
I am super new to doing real estate leveraged type of deals but would it work that way??? I am typically a cash buyer so I am just trying to see how I can end up getting 2 properties out of this instead of one; even if it doesn't pay for my 500k remaining in full; at least it could take 350k off..
Thoughts?