Home Equity - Wanting to begin investing in more properties

Las Vegas, Nevada
General Real Estate Investing
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Home Equity - Wanting to begin investing in more properties

Conor Purcell
Member since 2026 · 1 post · 1 vote

 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:

  1. Anyone refi'd out of FHA into conventional this early and hit HELOC seasoning issues? Which lenders were flexible?
  2. Vegas landlords what are realistic net cash flow numbers on a $200K SFR right now before/after all reserves?
  3. 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.

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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    4mo
    Quote from @Conor Purcell:

     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:

    1. Anyone refi'd out of FHA into conventional this early and hit HELOC seasoning issues? Which lenders were flexible?
    2. Vegas landlords what are realistic net cash flow numbers on a $200K SFR right now before/after all reserves?
    3. 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.

    @Conor Purcell
    Sounds like you've already put together a solid roadmap. One thing I'd pay close attention to is seasoning requirements and available equity after the appraisal comes in. The DSCR side is usually much easier once you have a target property and realistic rent projections. Curious what markets you're considering for that first rental purchase? Feel free to click Contact Us, check out our website, or give us a call if you'd like to discuss the scenario further.

    786-656-0387
    DreamPoint Capital
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    0Reply
  • Garrett CrosbyPro Member
    Real Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
    3mo

    Good plan overall. On the FHA to conventional seasoning question — most conventional lenders want you 6-12 months from the FHA closing before they'll refi, and HELOC lenders generally want to see the new conventional loan seasoned before opening a second lien. Some portfolio lenders are more flexible. You'll need to shop specifically for lenders who are okay with the short ownership history and aren't requiring 12+ months seasoning on the appraisal value vs. purchase price. Worth calling local credit unions and smaller regional banks rather than just major national lenders — they tend to have more flexibility here.

    On Vegas cash flow for a $200K SFR — the honest numbers in today's market are going to be tight. Rents on a 2-3BR in the $200K range are probably $1,400-1,700/month depending on area and condition. After your DSCR loan payment, insurance, property taxes, and PM fees, you're likely looking at zero to slim positive. Vegas has had some rent softening over the past 18 months with new supply coming online. The DSCR strategy is correct and makes sense — just underwrite conservatively and don't count on top-of-market rents. Happy to help you think through the underwriting if useful.

    [email protected]
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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2mo

    You will likely have to wait 12 months for the property to season before you can get the full appraisal value if you are using an FHA or conventional loan. If you are using a DSCR the seasoning can be much shorter but you cannot live in the property

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo

    What most of the comments completely if ignore is getting a LOC and trying to get 90% out of it. With a fha and a HELOC it will be very difficult to get a line of credit from someone. Have you spoken to any lenders ?

    7e investments53 Reviews
    WebsiteView Page
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  • Kristine Kehoe
    Real Estate Broker · Fair Lawn, NJ · Member since 2026 · 5 posts · 2 votes
    2mo

    The equity might not be as usable as it looks on paper. The improvements can help the value, but the lender still has to agree with that number. Seasoning can also slow the plan down more than you'd expect.

    I would be cautious about tapping your primary home if the rental only works with best-case rent. Repairs, vacancies and slower months still happen. If there is not much room in the cash flow from day one, that HELOC payment can tighten things up quickly.

    I’d talk to a few lenders and see what you can actually access. Then run the rental numbers more conservatively than you think you need to. Scaling is a great goal, but the first rental should not put too much stress on your primary home.

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Conor Purcell:

     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:

    1. Anyone refi'd out of FHA into conventional this early and hit HELOC seasoning issues? Which lenders were flexible?
    2. Vegas landlords what are realistic net cash flow numbers on a $200K SFR right now before/after all reserves?
    3. 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.

    Seasoning will likely be a big issue for a minimum of 6 months. As a "long time ago" mortgage loan officer, I'd meet with a mortgage broker as opposed to a bank, since mortgage brokers have access to programs that cater to investors.
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