I have one rental property and a primary residence. I have bought 4 total homes in Texas but I don't know much about REI so please be nice to me or else.... bwahahahahah
Objective:
1. take out a HELOAN on my rental property for $70k.
2. Purchase a new primary (turn my existing home into a rental) and use the HELOAN funds as a down payment
Considerations:
- Over half of my income is from RSUs that I vest in bi-annually so finding a mortgage lender that understands this has been challenging.
Question:
1. Has anyone done this recently in Texas and if so, did you use a mortgage broker or find the products on your own?
2. Calling all seasoned peeps: What am I not thinking of? This is the first time I'll be utilizing this strategy. I am unsure of any hidden fees or expenses that I need to consider. I aware I will need to get my current home rented prior to closing on the mortgage of our new primary. We have been in our current home less than a year but will need a new primary because our current home doesn't have dedicated office space and I've realized that I must have this to maintain my sanity.
@Ashlyn Sarrett thanks for the post. Always great to hear from a fellow Texan.
Now, several layers to what you are asking so I'll try to address each one...but it will be a little short for time purposes.
Take out a HELOAN on my rental property for $70k - If you bump this to $75k is much more doable. Do you have enough equity in the property to take out cash? 70%-75% is the max on these products.
Over half of my income is from RSUs - what have your previous lenders done with this? Why aren't we just using them to buy another home?
Has anyone done this recently in Texas and if so, did you use a mortgage broker or find the products on your own? - Finding stuff like this on your own is never our recommendation. And I mean this for plumbers, electricians, title companies, and lenders. We want to rely on other investors recommendations - which is what you are doing - but let's do it in a little more focused way. Read this article HERE on how to find real estate investing friendly lenders.
What am I not thinking of? - I mean, yes, there are things that we aren't thinking about but once you get in front of someone that knows what they are doing you should be significantly more armed with what do to.
Hope all of that makes sense but feel free to reach out directly if you want to talk anything through. Thanks!
HI Andrew! Thanks for the quick response. Really, really appreciate the thorough response.
HELOAN - we can def bump to $75k. We have $175k in equity - I can borrow up to 75% - right? RSUs: When purchasing our primary residences in the past, my base salary has been enough to qualify for the mortgage. Now that I have one rental and hopefully another really soon - I believe I will need a lender that understands this really well and the lender I used for my last purchase wasn't the worst but I'd much rather work with a lender that is very comfortable with RSUs as part of my income. I'll check out the link you sent :)