Real Estate Investor · Greenacres, WA · Member since 2011 · 47 posts · 8 votes
Hi All, fairly new member here. I have searched, but have not found specifics recently that would address this issue. We are in the midst of purchasing our 3rd rental. It is a REO. We are purchasing it at 60% ARV, so am wondering if anyone regularly gets HELOC to buy something with the HELOC $?
Then start flipping the one purchased with the HELOC monies. We would keep the 3 rentals we have now for long term growth, but am thinking of moving into the flipping arena with this idea.
Real Estate Investor · Plano, TX · Member since 2011 · 16 posts · 10 votes
15y
Mary,
I have had luck with a HELOC on a non-owner occupied property at Wells Fargo. I have done my primary banking there for years. I did have to talk to probably 8-10 different mortgage gurus in various branches. It seems they have good products, but many of those in the bank just don't know how to sell them to you. I essentially interviewed bankers and told them exactly what I wanted.
I got it and did in 3 weeks, no closing costs. Mine was for $70k on a property that I purchased 9 months earlier for $55k. I then went back in and got another one. I did own the home outright and had extensive history with them including unsecured lines.
I was surprised how easy it was. Terms are good for what I am using them for. Interest only at 5.49% right now. Actually that has been my rate since i opened them.