I'm looking for info on how I should go about using the equity I have for capital to purchase an investment property, or if you have other options, why those options instead.
I'm purchasing my home on a 10 year Land Contract for $60,000. June 2019 we will have lived here 5 years. Zillow estimates our home at $140k (I know that can be way off) I'm thinking cash out refi would be an option to access the equity.
I'm not sure of the steps I need to take. We have an eyesore room, it is a bedroom with a full bathroom in it. No walls or dividers.
Is this something I should take care of before attempting to get the most equity out?
Should I do kitchen/bath updating to raise the value before getting an appraisal?
I've been on BP for 1 year, I have attend webinars, listened to podcasts, listened to RE books, I have even done the numbers on multiple properties. I've actually found a SFR that I like the numbers on. Which brings me to my current dilemma.
What would YOU do?
(I'm sure I'm missing some needed info, please just ask)
Thanks for taking the time to read my post. I look forward to the replies.
@Jacob Smith certainly using the equity in your home will allow the best rate and terms for you. This is a very common strategy and a lot of investors use it. In general, you would need you home to be in good condition for this. However, I have seen lenders not even use an appraisal for a HELOC before. That might be the best route to go. Low costs and you don't pay interest unless you use it. It does have a variable rate so you'll want to have a plan to pay it back more quickly than a standard, 30 year loan. Post this in the Michigan forum and see if any local people have good recommendations for lenders who offer HELOCs in Michigan. Good luck!
Originally posted by @Andrew Postell :
Thank you for the reply, I will attempt to repost in Michigan forum.
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