Updated almost 9 years ago on .
Equity Line of Credit
Hello Everyone,
I have a 175k rental property in South America that generates $800/month in rent. The property is paid off and I'm thinking about getting an Equity Line of Credit against it to buy a 250-300k house in Atlanta to flip and rent it. My plan would be:
1. Ask the bank in South America for a $65k against my property?
2. Buy a house with a 40k down payment.
3. Use 15k from the loan to make some improvements in the new house.
4. Leave 5k in case of additional repairs needed.
5. Leave 5 k for closing costs.
6. Rent the house for about $2,500/month.
7. Use the Rental amount to pay for the mortgage and the equity line of credit.
Appreciate any comments/advise.
Thank you,