FHA, HELOC, Conventional loan

New to Real Estate · Milwaukee · Member since 2023 · 23 posts · 6 votes

I'm hoping someone may have advice or insight on the best way to go about acquiring more rental properties and the best way to finance? I have one duplex I purchased 8 years ago that has quite a bit of equity and also some cash to finance a conventional loan 20% down for a $300,000 house. Should I go 20% conventional loan, FHA, get a HELOC? My goal is to acquire one or two properties a year.

Thank you!

0 Reply

71 views

3 Replies

Jump to latestLatest

Sort by

Juan Yepes
Lender · Miami, FL · Member since 2025 · 123 posts · 34 votes
10mo
Hi Kira,

Great job so far with your real estate investments!

The loan product depends on several variables including the type of property (single family, 2-4 unit dwelling, multifamily) and the investment strategy (owner occupied - house hack, non-owner occupied).

You'll want to explore which option has the best terms to tap into the equity - HELOC or refinance.

You'll want to consider whether you prefer higher down payment and better cash flow (conventional and DSCR loans) or lower down payment but less cash flow (FHA - house hacking).

If you want to talk through options or strategies feel free to DM.

1 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
10mo
I would look into 5% conventional for your next purchase. Less closing costs than FHA but still have to pay some PMI. I think the PMI is worth paying in exchange for keeping 5% of your money.

i generally don't like helocs if that means you're going to be 100% leveraged. You're introducing more risk that way
[email protected]
Brick House CPAs53 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.