Looking into buying another SFR in my area. Not sure how I should fund my next deal. The budget is $400K.
1) HELCO = all cash purchase with intention to refinance later on
2) Refi on another rental property = all cash purchase
3) Conventional mortgage
Which method could save me some money at closing in NY and in the long run? My averaging closing cost has been $20K. Thank you.
@Thomas N. I am located in Pittsburgh but I would think the same rules would apply in New Your.
1. The HELOC is a great way to leverage your equity so paying cash cant hurt. Just be sure you can qualify for a HELOC before you tie up the cash in an investment.
2. Anytime you can leverage funds from anything regardless if its an unsecured LOC or a HELOC or a refinance its going to help you grow your portfolio.
Work with a good mortgage broker who has multiple lenders and programs. Reach out to @Jason Horr he can help you if you are planning to buy in PA.
Thanks Alex, the one thing I can say is talk to a trusted mortgage professional, because every ones individual situation is different. A type of loan that works for one person may not be the best fit for another person.
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