Accessing my equity
Hello everyone!
Disclaimer: I listened to every podcast on my daily 7 mile round trip bike commute to my jobs before pulling the trigger to purchase a house / investment property. AND I did read the "recent" forum discussions and tried finding more information on the blog before posting this. However if I missed the answer somewhere on the site please link to it and I will save us all some time and read that! :) Thank you in advance for your help!
My story:
My wife and I are expecting our first live baby in November (we lost a daughter at 37 weeks pregnant last December) and until then I'm working 2 jobs that keep me busy 7 days a week. The money is nice but I'm really looking forward to being a dad!
Thanks to Zillow.com and Homesearch.com we found a Jacksonville, FL, 1'800 sq ft, 3/1.5, on .3 acres, with pool foreclosure for auction and won the bid for 30k including all fees and closing costs. I pieced together the cash needed for the deal through an interest only loan from a friend (15k at 7% interest only for 2 years, with option to renegotiate at the end or pay off in full) and a personal loan from my bank (15k at 17% fully amortized over 3 years). The house is completely mine free and clear. It is not collateral for my existing financing package. The total cost to me per month is $587 which is $150 less than I currently pay in rent on a 2/1 apartment. We closed on this house on 8/5/14 and will be moving into it this coming weekend.
My question:
How and when can I get access to the equity I purchased in this house? By my very conservative estimate the house should appraise for at least 80k today and possibly for as much as 150k once updated as planned. I understand there is a "seasoning" period of 12 months from the date I purchased it. Is there any way for me to get a HELOC or equivalent sooner than that? I plan to use the funds to acquire more pieces of my real estate empire and would really like to start sooner than later.
Thank you for at least making it to the end of the post! I would be honored to get your thoughts on the deal and greatly appreciate any help on accessing my equity!