What would you do with a loan pre-approval for 500k?
Hi everyone,
Thanks for clicking on my post. I am a newer investor living in the Bronx, NY area. I currently own a single family out in Allentown that is about 80% done in rehab which i will be renting starting next month. I currently live with my parents and want to move in with my girlfriend but refuse to pay rent. With all the knowledge i have acquired, i want to build more equity and my main strategy will buy and hold.
I recently was preapproved for a 500k loan and contemplating on whether i should expand my portfolio to acquire more units out in Allentown where i bought my first property, where prices are much lower, or focus on finding a 2/3 unit in NY i can house hack to move in with my girlfriend and build equity in the fast appreciating market of the Bronx. I have enough for a down payment for a 500k house, but it will take some time for me to find a multi at that price range and anticipate paying interest rates closer to what a hard money loan seems to be (9-11%). If i buy in NY, i will have a huge PITI payment and will need to get the other unit rented fast. If i use it to expand my rental portfolio, i can pickup at least 3-5 units.
Wondering what others thoughts would be with the given factors. I appreciate you taking the time to read this post and would love any advice or other things i didn't mention here to consider.
Happy investing!