Rental Property Investor · Queens, NY · Member since 2020 · 2 posts · 0 votes
Hello everybody new here not sure if i made a mistake or im on the right path I'm doing a cash out refinance on my house to invest in a rental property should i have just got a HELOC instead because of the fees such as closing??
In general, I've found that you can do a HELOC on your primary residence, but if you were to do a HELOC on an investment property, it would need to be paid in full. Someone correct me if I'm wrong.
@Wilson Gonzalez if you have a specific property do the cash out refinance. you get to lock in a low rate and have an immediate use for the funds. If you don't have a specific property in mind I'd get a HELOC. It give more flexibility to use the funds and pay interest only when you draw funds and allows you to use the funds over and over again assuming you plan on using the brrrr method. Also, for lines below $250k there are usually close to no closing costs. Feel free to PM me if you'd like to talk HELOCs on either primary or investment properties.
@Morris Cohen hi Morris thanks for your input. Do you happen to know what terms and conditions the HELOC lenders are looking for? We have about $130k equity in our primary residence and thinking about taking HELOC for investment property. However we just started a business and so far have not been paying ourselves.
@Frank HAll of the programs I am aware of whether through me or someone else all do a DTI calculation, so if you just went self-employed that can be problematic.