Hello BP! I am new to investing in Atlanta! I am currently looking at another property that I would own out right, but needs a little rehab. My question is would it be wise to use a HELOC to finance a 10k - 15k rehab? Or would I be better off looking for some source of financing?
@Steven Stewart Welcome to BP! You can absolutely use a HELOC to finance a 10k-15k rehab. Your other alternative would be hard money but a HELOC should offer a much lower rate. Hope this helps.
@Samuel Elliott Sweet. Thank you for your reply. If I may ask further, would the best approach to getting a heloc be to find a bank(credit union or something), present them with the numbers, and await their approval? Just to give more info it's an older house but I believe apv would be 250k. Also, what are the interest rates for a typical heloc or is it pretty much decided case by case?
@Steven Stewart , your Lender shouldn't care why you're applying for a HELOC. (But I don't recommend using too much of it on holidays to Las Vegas or Reno). They should ONLY be concerned with how much equity is still left on your own PRIMARY even if you waste it all, and, can you prove that you can afford to pay back the minimum monthly payments?
Get it? Or of course you could just ask what percentage they would lend to buy the investment, and you've already got the cash to make up the difference - and its rehab. Cheers...
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