Hello BP fam,
Just trying to get some of your input. I am a joint owner with my mother on the property she lives in. She is the primary owner and recently retired. Im currently looking to purchase a property to buy n hold but I am not sure which is the best way to acquire a rental property in my case.
I have thought about pulling a HELOC on my moms house for roughly about 40k and using that to purchase a deal via a hard money loan to rehab, rent it out & cash-out refinance. 700+ credit score.
A second option would be going Fannie Mae or FHA and adding on a homestyle renovation loan if need be. And not have to pull out a HELOC on my moms house. Just 3% or 3.5% down payment. And rent it out.
What are your thoughts?
Thank you in advance!
May be irrelevant but
Im looking in the areas of:
- Fort Lauderdale, Fl
- Cooper City
If you are planning on living in the property I would probably go the FHA route. I would make sure your mom is aware of the risks of a HELOC if you do go that route.
Start with a owner occupied 4 plex using the FHA and use the HELOC for the DP on a second property.
You will need to live in the FHA property at least one year as its a requirement for the loan program to be an owner-occupant. But it is a great option to buy up to a 4-plex with almost no money down.
After that take the HELOC cash and do a deal.
How are they regulating wether you are owner occupying the property? What regulations are in place for this? Or better said, how would they know if you're not renting out the property.