HELOC for reinvesting in real-estate

[Justin Walls]

I recently purchased my first property a few months back.  It is my primary residence and I am renting out a room in my unit while renting out the upstairs (which covers all my property costs).  I did a rehab of the home upon purchase, but have not had it reappraised yet, but I do believe I have added about 40-50k to the value of my property after renovations.   

I work 4 days a week at a different city and have been paying rent there for the past few years and am now looking at reinvesting at a new property in this area for a house hack.  

Would it make sense for me to get reappraised and increase my amount of equity and use a HELOC?

Just looking for advice, fairly new to the game.  

Justin

[Denis F.]

Hi Justin, that's what I did. Setting up the HELOC had no upfront fee including appraisal handled by the bank so it just made sense to do it even if I don't use it and close it in 3 years. Now I am waiting for the right opportunity to use the HELOC as down payment or "cash offer" depending on the amount for my targeted property.