I am looking to purchase an REO for a rental using cash. I thought maybe I would do this instead of getting a regular mortgage and having to pay all of those closing costs. However, I would like to get my cash back out of it plus have some to do some improvements. Is a HELOC the way to go on this? Also, how long do you have to wait to get a HELOC after purchasing a house?
You can get HELOC immediately after purchase. In my experience they will only give you a HELOC for 80% of FMV. So to do what your talking about, to get any money out, your repairs plus purchase price must be less than 80 of FMV after renovations.
Check around because even some mainstream banks will do up to 90%, even 95%, on an investment property on a LOC. Title seasoning is usually not an issue if you find the right lender.