Obtaining the second property

[Steven Maldonado]

Hi everyone

So quick back story, I have closed on my first duplex in November and I’m house hacking in Providence RI, I love the home. Tenants are great. But now I want to plan my strategy for the next home. I ended up going conventional 5% down on this one and I’m wiped.

In one years time i estimate saving around 15k. Would love to house hack again, So I guess I'm asking how should I choose to finance the next? I assume it's way to early for a HELOC in a year? and since I got it at such a low interest rate (2.65) wouldn't make sense to refi would it? If anyone has any stories on how they acquired the second please feel free to fill us in. Any suggestions or recommendations would be appreciated.

[Anthony Thompson]

@Steven Maldonado yes, unless you think you bought it for significantly under value or the value has really skyrocketed in a year, I think it would be too early to try to do a HELOC or refi after only owning for a year.

If I were you, based on how you described your situation, I would probably save up the 15K and then do another owner occupied house hack with an awesome 30 year fixed rate again on the next one. (2.65% - wow!)

I also think waiting another 6-12 months while you're saving up your downpayment for your second property, is a good idea since it might be good to see how COVID and the expiration of the eviction moratoriums shake out.

Unemployment has increased a bit and some people seem to think there may be a "wave of foreclosures" from people who bought properties in the last couple of years and whose tenants haven't been paying for months.

I'm not sure if that's true (I can see arguments for and against that theory) but I'm saying there are some definite question marks up in the air right now, so waiting a bit to see what happens, while you save up your downpayment, might not be the worst thing in the world.