i was just wondering i dont hear to much being said about home equity loans well im new to investing as of right now im investing in single family homes (rentals) i got three homes that are paid for but can only get 70% of the equity because i already have a home equity loan on my name, that i used to buy those homes my question is that if it is recommended to buy more properties on the equity of those homes or try a diffrent method of financing i got good credit if i could get some advice on where to go from here from yall pros out there it would be highly appreciated i feel like im a little stuck do i wait to get the first equity loan paid for or do i keep on getting home equity loans and buy more rentals this are middle class homes nothing fancy rents here go around 650 for a 3 bedroom 1 bath CHA well let me hear what some of yall pros would do with this situation
melizg If you can find houses that you can and fix up and still be 90% or lower of the after fix up value, you can get all the money financed. This is purchase, repair and closing costs all rolled into one. You have to have about $2k for earnest money inspections etc.
I bought my last 4 houses using the same money over and over again. You really need to find a house at about 70% of the after fix up value and the numbers work.
I think equity lines are OK if used correctly.
By that I mean you have to remember you’re putting YOUR home on the line. I know you already know this.
I guess my point is just be careful. I would make sure you have a slam dunk deal before I put my families home on the line. And even then MAKE SURE you can handle the monthly payments and unexpected delays all construction projects have. Having said that, with the right project you can act quickly assuming you have the line established. When you make money you’re establishing a track record. Make sure you point that out to your banker and don’t be afraid to tell him you may be going across the street to get your next loan. Banking is a very competitive business if they know you can produce they will actively seek a relationship with you.