Allentown , PA
I currently own a home with about $25,000 in equity. The home will rent for $1,400-$1,500 a month and my mortgage/taxes are $800 a month.
I want to buy a multi unit - keep current home - live in one unit and rent out the other(s) so I can take advantage of FHA financing (my current home is conventional )
Would it even be worth looking into cash out or line of credit against my current home with how much equity I have ? I have a family member willing to invest in me but I’m not sure I want to involve someone else’s money/business in my first investment deal.
Also, I recently did a balance transfer from my high interest credit card to a credit card I already had opened with a zero balance (they offered me 0%balance transfer ) my credit went from 784-700 because of this!!! I’m so pissed. Do you think it will recover quickly? I’m wondering if it’s a glitch and it looks like I doubled my debt when in reality I just transferred it. It was a LOW amount of money moved too ($5k)
Thanks for reading and for any creative advice you may have. I can’t wait to close my first investment deal!!
My guess is your credit score will come right back. The card you transferred the balance to probably reported to the credit agency before the card you paid off. It’s just a timing issue.
Is the 25k equity you mentioned before hitting 80% LTV? If so, it might be worth it, otherwise probably not.
HELOC probably isn't worth it. Can you take some time to pay the CCs off?
I’ll text you my thoughts...
@Jacob Sampson yes .... I'm just trying to find the happy place between telling myself it's not time yet and finally taking my first step. I don't want to always be waiting for the perfect time. I had all my credit paid off in September and dog needed a major surgery 😔. It's always something. Now that I have it transfered to 0%apr for a year I'm less concerened about paying it off first.
@Jason Leavitt I'm still paying PMI.
Based on comps I'm pulling the house could sell today for 110-120 range. We bought for 86k (lenders estimate currently predicts resale of 95k but their numbers are totally wrong about my local market)
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