Heloc's also require a monitored DTI debt to income of the bank/lender holding the heloc could reduce or close the account due to excessive trade lines causing a shortage of fund on the purchase or repairs or renovation after the purchase.I have seen multiple homes sold this year that they had a first mortgage and a Heloc and the home sold for less than expected causing a problem with profits and in a few situations caused the home to not sell due to the seller getting lower offers and not able to pay off both mortgage and heloc.I offered a few things to keep in mind and mentioned to reach out if he had other questions.

Minimum 580 credit score and you can have a higher Debt to Income (DTI) ratio.

I'm also new here, but wanted to let you know there is a video on Youtube where Dave Meyer walks you through the process.

Thousands of thanks to you all!

Hey, everyoneStarting my own brokerage soon and have a great real estate attorney, but am looking to expand my network.

@Russ Chambers, ultimately, it's best to talk to an accountant to see what your tax liability is, but here is the framework you use to get close.

One thing I’d add is to get a high-level understanding of how real estate benefits you from a tax perspective.

If the exit strategy is that he sells his share to you, how are you going to finance this?

That means they’ll review your credit score, income, how leveraged you are across all your properties, your previous year’s tax returns, and your current-year financial statements to see whether your rental portfolio or business is actually profitable.They’ll also consider your debt-to-income ratio, how much cash reserves you have, and whether the property itself is generating positive cash flow.

We will be able to get the $500k exclusion.