Hello everyone! I am new to these forums and I just thought I should ask on here a question I had been thinking to myself. The context of this question is in the case of buying a 1st home initially under market value then using a home equity loan on that property to buy another house under market value, can you then start another home equity loan on the 2nd house to get a loan for the 3rd house?
Also Is it possible to combine the equity of the first property and the second to use to buy a 3rd property? Say if you had 40k in equity from the first but only took out equity for half the amount, can you use the other half again? Or is that not how it works? Sorry if silly questions! Very new
I done that for my first 3 purchases.
Not sure what you meant by equity loan, I did cash out refi.
Bought the first house back in 2009, did a cash out refi a year later to get enough equity/cash to buy the second house at 75k in 2010(those days are long gone).
I think the rule back then was that you have to wait like half a year to a year to refi.
If you are thinking line of credit, then it’s different.
Just note that there are fees associated with each loan process, so getting 20k out and have to pay 2-7k out on loan fees is not worth it.
Hope that helps.
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