Help: HELOC + private loan to finance next property purchase?
Hey everyone,
I wanted to get a little insight/pointers on the strategy I am thinking of taking on my next rental property purchase.
Here is where I currently stand. I can take out a HELOC on my current owner-occupied rental and a close family member is willing to do the same on their property to lend me the rest of the cash needed. Once approved, I want to buy a property in full as foreclosed, bank owned, and/or auction property so I can buy cheap, rehab, and increase equity. I then plan on taking out a mortgage on the property and pay both HELOC’s in full. Obviously I will only do this if the cash flow is worth it.
I want to see if anyone has used this strategy to further grow their property portfolio? Pros? Cons? Legalities?
Thanks in advance!!