House hack Equity

3 Replies

Hello BP

I will be closing on a 3 family house that I am going to house hack. The property appraised for 10k more then the asking price.

What can I do with this 10k? As I would like to purchase another property

Thanks BP

@Christopher Griffith nothing. banks will only let you pull out equity at 80% LTV generally speaking. If you are leveraged 90-100%, they won't touch that property until the loan is paid down below.

If you're strategy was to buy and pull out equity, you overpaid 

If you're strategy was to buy something and live for free or close to it, then you met that goal

Depends on where you are and what banks are willing to do. I know there are big, reputable banks here in the Cleveland market lending 90-100% LTV on HELOC's right now. If you're comfortable being that leveraged, there are lenders willing to give it out there.