Hey bigger pockets! I currently have three properties. One I am living in and two I have rented. I have quite a bit of equity in all three properties. I was wondering what the best way to buy a fourth property would be. I don't have the 20% down payment plus closing costs available in cash right now but would like to continue to buy properties. If anyone has any suggestions let me know thanks!!!
Are you in a position to get a HELOC on one or more of your properties? Some banks will let you do a HELOC up to 89.9%
Probably either a heloc or just a normal 20-25 percent down loan
if I did a heloc, do I use some of that money as the 20% down and try to get another mortgage? Or am I looking for something I can buy for cash under the limit of my heloc?
I've also been told it's difficult to do a heloc if it's not your primary residence. Any truth to this?
@Christopher McPherson you can use the HELOC for the 20% down or to purchase the whole property cash. Whatever makes most sense!
HELOCs are doable for rental properties, but sometimes harder to come by. It may also make sense just to refinance into a conventional 30 yr if you have enough equity to make it worthwhile.
Be careful daisy-chaining your properties together financially with HELOCs because if a downturn in the market occurs, your property investments will fall like dominos. It's better to lose individual properties instead of multiple investments at the same time.
We do regular refinances to take our cash out and buy another one when we have enough equity that it makes sense.
You can do an equity loan. if you need more information.