Updated about 7 years ago on . Most recent reply
Brrr Method and Heloc Clarification, Please...
Can somebody please clarify the HELOC for me, please? I'm going to be closing on my 1st rental property on May 1st. Upon closing, I will instantly have approximately 50K in equity in the house. I was under the impression that I can immediately refinance and then take out up to 80% of what the house has been appraised for. I obviously want to use that cash to then put down on my next sf rental. I was just told I can't do that for 12 months on a home that I do not live in. So what's the right answer? Thank you so much in advance for helping.
Most Popular Reply
@Simon Terrazas Jr. The only way to do it and not be overleveraged, is to find really great deals. If you're not using your own cash for the second one, your initial financing will be 100%, so you have to find deals that are 70% LTV, so you can pay everything back with a refinance, and have a property with no money out of your pocket in the end.