Hello everyone, hope all is well!
I'm planning on buying my 2nd investment property out of state speficially San Antonio TX,
I was wondering if I should do a FHA 3.5%, CONVENTIONAL 20-25% down, or HELOC on my current investment property. Would like some direction on which would be the best avenue to take on the second income property. My current Loan on my first income property is a conventional loan with over $110,000 in equity.
Also if I should go through an agent , or find a wholesaler. Any help would be appreciated God Bless!
@Carlo P Santa Ana congrats on taking action! If you are truly investing out of state then it will be very hard to use the FHA loan. You are supposed to own occupy the property when you use FHA, and that will be tough to prove to an underwriter if you live in a different state. Most likely, you will be using a conventional loan. I would strongly recommend you connect with an agent and a lender in the San Antonio market. Likely all you will need to do is go on the forum for San Antonio and focus on agents and lenders who post a lot. I personally am very active in the Chicago forum which is where I work, and I meet clients all the time who find me this way.
Look for people who consistently add value and who have a track record. Reach out and connect to see who you click with!
@John Warren Hey John thanks for the input much appreciated !
@Carlo P Santa Ana if you can use a HELOC and still cashflow while paying back the loan, then I would do that.
Conventional down payment would make it easier to cashflow, but I would look at the CoC under both scenarios and see what gives you the higher return.