Cold feet going after 2nd deal, HELOC as a down payment
1st deal done; a buy and hold that cash flows 200$ a month after all expenses and yes, I also put away for repairs/maintenance and am also paying a property manager.
I’m getting cold feet gearing up for a 2nd deal. I plan to do another buy and hold. I have decided to get a HELOC on my primary home. I close on the line of credit on Oct 6th . I will be using the HELOC for a down payment and then obtaining a conventional mortgage.
I am very risk-averse. Even with careful planning and knowing my numbers, I still felt a little like I was rolling the dice with deal #1. Perhaps having young kids and a home I don’t want to lose is scaring me.
I am able to get an introductory offer of 1.99% fixed prime rate for one year on my HELOC. My goal is to do a cash out refinance in roughly 6-12 months to be able to pay back my HELOC.
How hard is this to do?I would love to hear success stories. Does this sound like a smart thing to do?
I am so happy that I have found a place to share and ask questions. I am used to bouncing ideas off of people who don’t know anything about real estate investing and getting a blank, glazed stare back.