Updated about 6 years ago on . Most recent reply
Financing my first rental
Hi guys. Firstly I want to appreciate your help. Being a first time investor is very scary but your advice is helping me get over that fear.
I’m feeling good about this single family house that I’m looking at. It’s an ugly house in a beautiful neighborhood. The numbers are looking great and will cash flow just under $500/month.
I would need 37K for downpayment and 40K for rehab (which I believe is an overestimation but I’d rather lean that way).
I have 35K in equity from my primary residence. I can take a HELOC from that and finance 2K from my savings to meet the downpayment. I have more than enough credit line to cover the 40K rehab, and since I'm in active duty, my APR is 0-6% on my credit cards. Is this financing plan a good idea for you? Would it be a bad sign for lenders if I take a HELOC to finance a downpayment? Thanks again for your help!