Jacksonville, FL · Member since 2020 · 9 posts · 9 votes
Hello!
I recently bought my house (new construction) for 260k and the floor plan is now selling for 330+. I REALLY want to get into real estate investing. I'm thinking section 8 or STR. I'm thinking a HELOC could be my best route to get started. I'm thinking Heloc into a BRRRR Strategy and would love to talk to someone more knowledgeable than myself and that may have experience with this. My thinking could be way off! Not sure!
Congrats on the home purchase ! Glad to see you already have equity in your home, and will soon be able to leverage some of your debt. Like alot of things in real estate, the answer is " it depends". A HELOC maybe great, but is a large open revolving debt. Currently the market is still sitting below the average HELOC rate in my experience. Meaning, a purchase with HELOC money may be good as means of acquisition, but with the intent to close it ASAP.
Also consider a refinance. Most lenders will allow for 80% LTV. With an appraisal of 330K that means 264K to you. Something to consider. Hope all goes well !.
@Tyler Cotter my only concern with the refi is that I’m transitioning to a commission job so I’m not sure if I’ll be able to meet income qualification requirements! I appreciate your response!
I recently bought my house (new construction) for 260k and the floor plan is now selling for 330+. I REALLY want to get into real estate investing. I'm thinking section 8 or STR. I'm thinking a HELOC could be my best route to get started. I'm thinking Heloc into a BRRRR Strategy and would love to talk to someone more knowledgeable than myself and that may have experience with this. My thinking could be way off! Not sure!
Zack
Zack,
I am in pretty much the same position. refinanced the house 6 months ago at a ridiculously low rate, so thinking HELOC or 2nd. Have been doing a little research and US Bank is supposed to be the go to.
The plan I am toying with is interest only on the down for my property, BRRRR, pay it off and use any proceeds for next property. If not enough cash out keep the interest only funds to roll into the next property. Still looking, reading, and thinking. Would love to know what you end up doing.