My wife and I just bought a home in February of this year and we are currently house hacking while we reno the upstairs where we are living. We have quite a bit of equity in our home even before any updates. We are really wanting to buy a town home rental property in a college town, that we plan to rent to a single family. We are not sure how to go about financing this purchase. We have enough equity to cover the property, but we again don't know how to do this! Whether we should take out a HELOC, or refinance our current place, or just use our home as collateral. I'm sure there are other options out there, but please send your advice!
We started out investing with a low interest HELOC. That can be a good way to go, but even better are no money down deals with very motivated sellers. We have done seller finance deals, reo directly from bank (AND they financed it also), and theres always wholesaling or assignment of contract where you have very little risk and can build up some capital for your next purchase. All these and more can be no money down (or very little). Hope this helps. PM me for a great book that explains all the strategies in a very understandable way. There's TONS of info on this BP site to help you get started too!
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