Leverage existing assets, cash out refinance to consolidate
Hi, I want to buy a property using either a HELOC or cash out refinance on my primary, then use a 401k loan to cover the rehab expenses. Once rehab is complete, I want to do a cash out refinance on the property and either pay off both the HELOC and 401k loan or at least the 401k loan. After rehab, I plan to hold and rent long term.
1. My primary LTV is 80%, will this qualify me for a HELOC or cash out refinance? If so, of the 20%, how much could I leverage?
2. What is the likelihood I will be able to do a cash out refinance post rehab and how much equity would need to remain in the rehab after all was said and done?
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
I don't think you have enough equity to qualify for a HELOC at this time. @Albert Bui would be able to tell you for sure. But even if you could I don't think this would be good idea. You are using too much leverage, my advice to you would be to save up some cash first.