I own a single family rental property. I have had it for three years. I am "assuming" there would be equity by now... maybe I am wrong ???
I would like to buy another investment property; I have saved around 10k so far this year and would need another 15-20k for the 20 % down payment to buy a three family in our area.
Is it wise to pull equity out of one of your investment properties to buy another ? Do all HELOC's need home inspections ?
any help would be great; I am just starting out and want to learn as much as possible before jumping into another rental property as I have done some things wrong with this one haha..
HELOC's don't require home inspections (neither do purchases - home inspection is up to the buyer, not the lender). HELOC's do require an appraisal. Loans on investment properties are only up to 80% (if that much) appraised value. If you're going for house number 3, your lender may require 25% down (that's usual, conventional).
Make sure that the HELOC plus mortgage payment still gives you room for positive cash flow from your rental unit.
All that covered, IMO you should absolutely let your rental earn money by helping you buy another rental.