I own a property valued over $850K. I want to buy another piece of land (for investment purposes) for $450K. Should I take out a traditional mortgage (conventional loan) or use the equity in my existing home (Equity Loan/Heloc) to purchase this other property?
@Lawrence Eiseman There are many factors to consider: Are you buying the land to hold, flip, lease or build also what's you're risk tolerance. Heloc might cost you less if your going short term but you might be risking your home if your speculating and fail to make the payments. So I think you should do the ol pro's and con's to each of those options to help you figure out which way to go.
Best of Luck!
@Joe Abughazaleh I plan to subdivide the lot into 3 plats, Sell the other 2 plats, and build the 3rd plat into a residential property. If I had the money, I would build the 2 plats and sell the homes but I don't so I'm gonna sell the other 2 plats.
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