I'm interested in using the HELOC method, I owe roughly 55k. House is valued around 100k. Should i take that line of credit and rehab, rent my house. Or put it as a down payment on a new brrr project?
@Kyle Thompson When you say rehab / rent your house, do you mean to rent a bedroom in your house? Or do you mean you would move out?
Hey @Kyle Thompson
That's great that you have equity and you realize that you can use it to your advantage in real-estate investing!
However, generally you would like to start with the strategy and then go to the financing question.
Strategy might start with the following 3 questions:
1. Why do you want to invest in real-estate? E.g.: financial freedom, passive income, secure your kids future...
2. What do you want to achieve with real-estate investing (REI)? E.g.: cash flow, equity, ...
3. How do you plan to do that? E.g.: start by flipping sfh until gaining enough case to brrrr and finally move to buy-and-hold enough small multi family properties...
And only then, you move to your detailed plan of action which includes, amongst other stuff, the question of how to finance your first deal.
In any case, get yourself really educated before moving on. REI is full of potential but also full of risk.
Good luck man!
I would love to put 10-15k into my current resident, and take the rest and put it towards another property to build my portfolio. @Dave Spooner
I appreciate the comments, I am a newb but have been interested in gaining more real estate and grow my wealth/financial freedom.