HELOC Real Estate Investing
Hi, I have lived in my primary home for 8 years and have a good amount of equity in it. How could I go about using a HELOC to buy 1-2 rental properties? Would it be the down payment or buy it full price with one big HELOC?
Also, which is smarter using a HELOC or business line of credit to buy my next 2 remtals? I have heard the HELOC is a great way to go but I want to make sure if I do I can refinance it into a 15 year note.
My question is which route is the best in using the equity in my home to add 2 more turnkey properties?
A HELOC is a great option to fund the purchase of rental properties. As long as your income supports it, you can use the HELOC as the down payment and take out first mortgages to fund ~65% of the purchase.
Not sure why you would want to refinance the HELOC into a 15 year note. This isn't necessary. Although probably an option to refinance into a 15 year fixed rate 2nd mortgage. Need to talk to your bank.
I'd start by taking out a HELOC now. You won't pay on it until you draw from it. So it will be good to have the HELOC process out of the way while you shop for deals.