Home Equity - Wanting to begin investing in more properties
Las Vegas based, looking for some real world input on my situation.
Bought my primary 2 months ago for $295K, FHA at 5.75%, balance is $289K (Comps selling in the neighborhood for $400K). Put in significant work since closing. New laminate floors, renovated bathrooms, modern lighting throughout, fresh paint. Confident it appraises at $375-380K right now, maybe more.
Goal is to use a refi (FHA → conventional to kill the MIP) + HELOC to pull ~$50K equity and use that as a down payment on my first rental property. Planning to use a DSCR loan on the rental side so my personal income/DTI stays clean.
Target is a ~$200K 2/3BR in Vegas to start, Section 8 or market rate, then scale from there. Looking at Midwest multifamily after the first 2-3 doors are stabilized.
A few specific questions:
- Anyone refi'd out of FHA into conventional this early and hit HELOC seasoning issues? Which lenders were flexible?
- Vegas landlords what are realistic net cash flow numbers on a $200K SFR right now before/after all reserves?
- DSCR lenders you'd actually recommend?
Not looking for "talk to a financial advisor." Looking for people who've actually done this. Thanks in advance.