Strategy to Acquire Next SFH Properties

[Brandon Sturgill]

I currently hold a FHA loan on a SFH that was purchased as a 1-year live-in rehab project with the intent to resell (owner occupant requirements). I will be relocating to another city and acquiring another live-in SFH with the same intent at the end of the year (June 2014). I am interested in the purchase of a secondary SFH investment property prior to the move, but struggling to make the numbers work. I have a small bank that will do a portfolio loan for the second investment proeprty at 2 points over prime, 80 percent of appraisal or purchase (whichever is lower), amortized on a 15 year schedule. I can work with a fixed rehab budget, given I can do the majority of the work myself (I would need 12,000 for the rehab). I guess my main issue is covering the rehab/closing/exit costs. Is a HELOC on my main property a reasonable strategy to cover the costs. Is there something better anyone has used in a similar situation.