Realtor · Columbus, GA · Member since 2017 · 13 posts · 14 votes
Trying to get some creative financing for a potential property purchase. Will use this property as a BRRR or Flip. I have a hard money lender, but can only get enough to cover either the purchase or the rehab. Is it possible to purchase the house cash, and get a HELOC on it, that would cover the Rehab Costs?
Alright, so it could be possible if I were to use this as a House Hack? Wrong terms, it's private money, not a hard money lender. It's a family member willing to lend up to a certain amount.
Gotcha okay, yes it is possible to do a HELOC on a house hack if used as your primary. Its important to note though they will give you a loan amount usually between 80-90%LTV of the purchased price, not of a new appraised amount, unless its been longer then 12 months.
Trying to get some creative financing for a potential property purchase. Will use this property as a BRRR or Flip. I have a hard money lender, but can only get enough to cover either the purchase or the rehab. Is it possible to purchase the house cash, and get a HELOC on it, that would cover the Rehab Costs?
Details: "Triplex" 3/1 and two 1/1
Purchase Price: 60K
Rehab: 40-50k
ARV: 150-165K
Est. Rent: 1700
In this current economic climate, HELOC's on investments are very limited, whereas a HELOC on your primary is as easy as 123.
Alright, so it could be possible if I were to use this as a House Hack? Wrong terms, it's private money, not a hard money lender. It's a family member willing to lend up to a certain amount.
Alright, so it could be possible if I were to use this as a House Hack? Wrong terms, it's private money, not a hard money lender. It's a family member willing to lend up to a certain amount.
Gotcha okay, yes it is possible to do a HELOC on a house hack if used as your primary. Its important to note though they will give you a loan amount usually between 80-90%LTV of the purchased price, not of a new appraised amount, unless its been longer then 12 months.
@Brandon Dean Just note that the HELOC will hit your DTI. So make sure to run some math to make sure you can still qualify with lending with that on there. You will want the private lender to record the note so you can use the income you are bringing in from the other units to offset your debt. This will help with the DTI on future purchases. Talk to a lender to make sure ... but I've seen investors not record private notes and then get shutdown from financing.