Get started with rentals using Heloc of loan?

Question

I am looking to have rentals from SFH or

MFH.  Would love some advice on using HELOC from fiancé or loan from bank to get started.   Also have some cash aside would rather use that for a fall back for 12 month of payments

Thx

Keith Ellis · Answer

I'm not sure, but I'd suspect the answer would be lender specific. Best to consult them for specifics.

Thomas Heaphy · Answer

Thx.  Good to know.  I was curious if you knew what is the chance to pull the credit line from you? I heard the bank can do that anytime?

Thomas Heaphy · Answer

Ok good to know.  On the heloc I was told bank could pull the credit line at

Anytime.  Is that true? Or what would have to be the circumstances of that to happen. Besides the 07,08 issues

With housing crisis.

Keith Ellis · Answer

US Bank also does 99% LTV HELOC's.

Thomas Heaphy · Answer

if my fiancé were to draw from her heloc and put into my C Corp and then purchase rental. Or just  Purchase rental in a trust for our kid directly with funds?  If the trust was the answer can you refi once it's rented to pay back heloc and do the process all over again?

Shawn Ackerman · Answer

@Thomas Heaphy I'd suggest looking into a bank that will do 90%LTV.  I know Capital One and TD bank both do 90% HELOC's.  Good Luck!

Thomas Heaphy · Answer

thx

Shawn Ackerman · Answer

@Thomas Heaphy this is a great way to get started.  The money is cheap.  My first Heloc was 4.5% APR variable, first 10 yr interest only and 20 repayment P/I.  So If you chose to go that route, I'd recommend it.

Chris T. · Answer

@Thomas Heaphy

It's a good strategy to use HELOC to buy/rehab, then rent/cash out. Look for BRRRR on BP, there're a ton of information on how to implement this.