Salesville, AR · Member since 2017 · 9 posts · 1 vote
I want to use the equity from my personal home to buy my first rental home. I have $100,000 in equity right now. If I went to a bank to get a home equity loan how much could I get? I'm looking at a foreclosure that I think I can get for $30,000. I'd like to put $15,000 into repairs. Could I finance the entire loan just from my equity? I appreciate anyone who could help me with this!
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
9y
What I normally see is 75% loan on the equity. You could get $75,000 and fund two deals like you are describing. I would look for a small apartment deal. Use the 75,000 as a 25% down payment on a $300,000 purchase. The equity is "seasoned" money and you can get a 75% loan against the new purchase. This should cash flow better than an SFR. I don't know if your market has something in that price range, but I would look.
Lender · Springfield, MO · Member since 2015 · 379 posts · 180 votes
9y
I think with a little hustle and networking through some local banks you should be able to find a 90% HELOC, maybe 80%. That should cover at least that deal. Good luck!
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
9y
What I normally see is 75% loan on the equity. You could get $75,000 and fund two deals like you are describing. I would look for a small apartment deal. Use the 75,000 as a 25% down payment on a $300,000 purchase. The equity is "seasoned" money and you can get a 75% loan against the new purchase. This should cash flow better than an SFR. I don't know if your market has something in that price range, but I would look.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
9y
Originally posted by @Account Closed:
can you heloc a rental property that has equity to fund a deal? how would you go about it
ELOC on investment properties are not easy to find but 4 or 5 years ago I was able to find a few. Instead I refinanced so I did not actually go the ELOC route.
It took me a few hours of research and maybe 10 calls to find a few places that offered a ELOC loan on my rental properties. A few places that used to offer them were no longer offering them so those offering them seemed to be less than previously.
If you find a place still offering ELOC on rental properties please let me know as I think I am making 2 offers this week that may stretch my finances a bit.