Hey guys, Iam new to real estate investing and BP. I made the choice to focus on leaving a legacy for my kids and grand kids. Iam leaning towards buying multiple properties and renting them out in my home state of New Jersey.

I havent bought a property yet but I am thinking about taking out a home equity loan to put down as a down payment for my first deal, however my mortgage company said they do not do that. They told me if I wanted to take equity out I would have to refinance, is this normal? I do not have the financial backing to lay out $5-$10k on a down payment, any insight anyone could give me would be great. 

@Lance Marquez - Hello Lance! Welcome! What city are you based out of? Have you considered starting small with renting rooms in your home or buying a multi unit (2-4) building perhaps with an owner occupant loan?

@Natalie Schanne Thank you.

im in New jersey. No I have not. Unfortunately, renting a room in our current house isnt an option.

But Ill looking into your other option.

Thanks

@Lance Marquez Im in Manalapan NJ

Welcome to BiggetPockets, Lance! It's a great place to learn more about investing in real estate.

-Julio

You will need to pull a lot more than 5-10k for a downpayment in these markets all over NJ. I wouldn't disrupt your financing until you understand how hot the market is right now for investment properties and that you will need 20-25 percent down to get one.

Originally posted by @Lance Marquez :

Hey guys, Iam new to real estate investing and BP. I made the choice to focus on leaving a legacy for my kids and grand kids. Iam leaning towards buying multiple properties and renting them out in my home state of New Jersey.

I havent bought a property yet but I am thinking about taking out a home equity loan to put down as a down payment for my first deal, however my mortgage company said they do not do that. They told me if I wanted to take equity out I would have to refinance, is this normal? I do not have the financial backing to lay out $5-$10k on a down payment, any insight anyone could give me would be great. 

You are in a good company Lance!