New mortgage or Home Equity not sure

[Dale Miller]

Would like to make my first deal in the next 6 months or so. We have pre qualify for 300k original mortgage and we have 140k in equity. Looking for a 2-4 unit in tonawanda kenmore buffalo ny. Just looking for something around 150k or less. not sure if its a good idea to use home equity or conventional mortgage. This would be a second home and we would not live there. Is there an option that has fewer fees?

[Matthew Irish-Jones]

@Dale Miller Yeah I agree with your assessment, a large renovation project increases your risk exponentially.  There is a lot that can go wrong.

Couple questions, are you going to self manager the property and the value add renovation?  I know you said that you want something that needs some work but, does not need a full renovation.

Will you be doing a lot of the renovation work yourself or contracting it out?

Yes I own and manage several properties in all of those areas except for NT, we do not have anything in that area for whatever reason.

I think a safer investment is a much wiser choice while you are gaining experience.  Look for something that  has some or most units rented, and maybe needs work to be done in one unit.

4 Units are in very high demand and they are very competitive.  You will probably need to widen your search to 2-4 units and make a move on the best deal possible. 

Happy to share some of the rental rates we get in each specific area if you need.