First timer with a need to know basis.. need help

6 Replies

I bought a home for 118,000 in 2010, it now Zestimates at 226,000. I owe like 77,000. I’m new to this..What should or can I do to get on the road to success like you guys. Any suggestions? Like I mentioned I’m new to this but would truly love to start somewhere? Should I get a HELOC, refinance, or what are other options?
I like the idea of a HELOC because that way you'll be able to use it and only pay interest when you use it.

I would say HELOC and use it to buy a home that needs work fix it and refinance it into a mortgage and pay off your HELOC and do it again. Using a BRRR strategy.

Your interest rate should already be low. HELOC and buy a property. BRRR. Pay HELOC back. Buy another property. BRRRR. Pay HELOC back.. repeat

First off, the Zestimate on your home means nothing as those numbers are often grossly inaccurate. Secondly, you did not mention what you have been doing with that house. Is it a rental and if so, how much cash flow does it produce? Or is it your primary residence?

Utilizing a HELOC is often a good idea so long as you purchase a cash producing asset that has returns higher than the cost of the HELOC interest. However, that is a general statement at best and may or may not be the right thing for you. It could be that selling the home and exchanging into something else is better.

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