Good Evening everyone. isn't bigger pockets the best thing to come around for newbie real estate investors almost feels like I am cheating,,, so many good people with good information.wish I would have found it sooner and now that I been here for about a month I don't feel so nervous and shy to ask questions.
I am trying to figure what would be the most profitable way to utilize some equity I have acquired . I have an 11 unit apartment building located in a rent control area on Los Angeles worth about 1.7 mil we owe 200k at 3 percent to family member, and We have another property worth about 525 k there is a Heloc of 365 k, and on our primary residence we owe about 565 k and it's worth about 1.7 mil .
My question is which would be the best loan to pay off first. Or would it be wise to pull money out of the primary residence to pay off Heloc ?
I have been working with one bank for 10 months ( we have been members of this bank for over 25 years ) the underwriters are so slow I have given up on them I have a credit score of 740 but I guess being self employed is the problem.
What I am trying to do is get a down payment to purchase more property , or possible something more creative basically I feel I have some equity buy I just don't have the knowledge yet to capitalize on the properties equity.
If anyone has any advice I would greatly appreciate it
I would suggest a cash out refi of about $800K (a little less depending on closing costs) on the first property but basically bringing your debt to 65% if the cash flow can support it. Use the $800K to purchase two more properties. $400K on each with not more than 65% debt on each. Leave your loan to the family member in place and leave your personal residence alone @John Lupo .
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!