1st real estate deal
I'm new to real estate investing and recently put an offer in on a property that I believe could be converted into three rental units. Based on my numbers, it looks like it would generate solid cash flow once everything is complete.
I have a lender who told me they could finance the purchase as a second home with a conventional loan, but I'm trying to understand whether that's really the best approach. I've also considered using a home equity line of credit (HELOC) on my primary residence to help make the deal work, but I'll admit that idea makes me a little nervous since it puts my home on the line.
For those of you with more experience:
- Would you use a HELOC to help acquire your first investment property?
- Is financing it as a second home a good option, or are there drawbacks I should be aware of?
- If you were starting over, how would you structure this deal?
For a little background, I have a stable full-time engineering job, good income, and I'm looking to build a long-term rental portfolio—not flip houses. I'd really appreciate any advice or lessons learned from those who have been in a similar situation.
Thanks in advance!
I am new to investing and have put an offer in on a property that could be converted into 3 units. This would provide decent cash flow. I have a lender that has said they would give me a loan for this as a "second home". which should be a conventional loan. I thought about doing a Equity Line or HELOC. to make this deal happen but am nervous to make that happen.