Creative Financing for First Time Investment Property

[Taylor Carlson]

New to the idea of real estate investing, but have been reading books and listening to a number of podcasts lately and am starting to get a grasp on the concepts. I currently own a single family home in Southern Oregon (with a mortgage and a little over 100k in equity) and am interested in starting with some local real estate investing. However, I currently don't have a very big down payment (at least not without going into more savings than I'd like). What is your opinion on HELOC or home equity loans to help with a down payment for an investment property? Reasonable option to consider? Risks / rewards? How much do the current market conditions affect this strategy? Or is it better to just keep saving for cash down payment?

Thanks! 

[Taylor Carlson]

Quote from @Lawrence Potts:

Hey @Taylor Carlson,

Lots of investors utilize their equity to acquire more properties. HELOCS or refinanced are common. It really depends on how much you can borrow and how much it impacts your DTI. You can definitely wait and save up your money, but it's slower and opportunities may be missed and the market may shift that can impact your buying power.

I’d encourage you to reach out to an investor-friendly lender that can go over your financial situation and see what makes the most sense for you and your strategy. I recommend @Grant Schroeder, we recently had a BP member in Beaverton close on their 2nd home purchase using their HELOC on their primary.

Hope that helps! Let us know if you have any questions or if there’s any deals you find that you want us to analyze 👍

Lawrence, thanks for reply and recommendation. I'll keep Grant in mind.