Plan was to pull a HELOC for 25% down payment and then a mortgage for the remainder. Bank came back and said I can only do one with my DTI. My new plan is to pull just a HELOC and buy a foreclosure/auction property with my HELOC and also use it to fund the rehab cost. Once finished I would sell it and pay off the HELOC and have enough for a down payment on my first buy and hold. Anyone do this as a way to get Into their 1st rental property. House hack isn't an option for me unfortunately.
Yes definitely doable and done all the time.
We did BRRR with two properties like that only difference is we kept them as rentals and refinanced them but had to wait to refinance
All I'd like to say is make sure you have plenty of reserves because this could be dangerous. Don't overbid and make sure that even with all of your repairs you'll have some change to fall back on.
Not a bad plan. For a buy and hold you can also look into purchasing a property “subject to” the existing mortgage or if the property is free and clear utilizing seller carry back financing.