Coloma, MI · Member since 2014 · 6 posts · 0 votes
Using a HELOC (on my paid off home) to buy Houses to rent, that need work Then repairing them and placing a mortgage on those houses. This seems like a good plan in order to be able to offer "cash" for deal. Anyone doing it this way. Should I have to pay for the appraisal to get a home equity or did your lender cover it? Is there better options that I am over looking? Thanks everyone!
I think that's a great strategy. I use the HELOC on my primary residence for a lot of real estate activity that I'm involved in.
It's important to try and be accurate with your ARV and be sure you can cash out when the time is right. Buy right and if the appraisals go well, you could create enough value to get all your money back.
Some lenders will charge for the appraisal on the HELOC and some don't. I know that US Bank doesn't, I have mine with them.