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Zach Hurdle
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Ways to Alleviate Payments on Recently Purchased Texas Land

Zach Hurdle
Posted Apr 12 2023, 10:02

Hi everyone. Kind of a specific question here.

About six months ago, I bought some land in Texas with a HELOC off of my current Utah house. The idea was to use more of the HELOC to build a property on it, short-term rental it, and cash out refinance to pay off my HELOC and end up with a 30-year mortgage on the building/land Texas combo. However, after some various rate changes and increasing building costs, I want to wait at the moment. I have a house-hack in my current house that can absorb the interest payments on my HELOC, so it's not costing me money at the moment. What I was wondering is if I can go ahead and cash-out refinance the Texas land, as was originally planned, only without any kind of structure built onto it. Then, I could use that money to pay off my HELOC and not deal with the varying interest rates, and hold onto a fixed 30-year mortgage on the land. Then I can build later when I'm comfortable. Is this possible?