HELOC and Turnkey Investing Advice
I'm a real estate investment newbie living in Los Angeles. I currently rent my primary residence to film crews which pretty much covers my mortgage. I've paid off about 50% of my home and have around $400k in equity. It would take me a year or two get the cash needed to invest so I wanted to see how everyone felt about using a HELOC for a downpayment/rehab costs on my first investment property?
I'm thinking about investing in the central valley of California mainly because my family has farmland outside of Bakersfield and commercial properties on the coast but I think my money would do better out of state. My Dad is partnered in a business outside of Amarillo, TX that he flies out to often so that area is also an option. Went to a land auction with him which was really interesting.
Also, how do people feel about turnkey investment companies? Obviously you only get as much money as the work you're willing to put into a deal so I wouldn't be making as much as if I did the deal myself. Maybe breaking even but building equity? Is it just something to stay away from? I mainly ask since I work a busy job, deal with hosting the filmings, and have a newborn.
Thanks, Allen