Seeking advice from experienced investors on ways to finance a property.

[Charles Lee]

Hello folks,

I am 27 living in Canada and make roughly 53k after taxes.

I have been living in my condo (Purchased for ~159k) for just over a year that I put 20% down payment (~31800) on and I am looking to purchase another property (preferably detached home up to 350k but another condo would work).

I have ~82k in my investment portfolio tied to ETFs that I could sell to use towards a down payment but I prefer not to touch them.

Inspired by the BRRRR,

My current plan is to use my parent's HELOC to fund my 20% down payment for a fixer upper around 250-300k and mortgage the rest of the 80%.

I plan to reno the new property, remortgage on higher assessment, pay back my parent's HELOC, live in the new property and rent out my condo

Or,

I plan to reno, remortgage on higher assessment, pay back my parent's HELOC, rent the place out and remain in my condo.

Could a better option be to pull out my ETF investments to fund the down payment? 

Would it be a better idea to purchase 2 condos as rental property?

I am not afraid of the risk I take on however I am cautious because my parents would be involved although they are supportive.

If there are any experienced investors willing to put in feedback for the scenario or just advice in general to a 27 yr old that has been reading and studying investments/RE investments and preparing to dip my feet in the water, it would be much appreciated.

Thank you

[Stevo Sun]

Quote from @Charles Lee:

Hello folks,

I am 27 living in Canada and make roughly 53k after taxes.

I have been living in my condo (Purchased for ~159k) for just over a year that I put 20% down payment (~31800) on and I am looking to purchase another property (preferably detached home up to 350k but another condo would work).

I have ~82k in my investment portfolio tied to ETFs that I could sell to use towards a down payment but I prefer not to touch them.

Inspired by the BRRRR,

My current plan is to use my parent's HELOC to fund my 20% down payment for a fixer upper around 250-300k and mortgage the rest of the 80%.

I plan to reno the new property, remortgage on higher assessment, pay back my parent's HELOC, live in the new property and rent out my condo

Or,

I plan to reno, remortgage on higher assessment, pay back my parent's HELOC, rent the place out and remain in my condo.

Could a better option be to pull out my ETF investments to fund the down payment? 

Would it be a better idea to purchase 2 condos as rental property?

I am not afraid of the risk I take on however I am cautious because my parents would be involved although they are supportive.

If there are any experienced investors willing to put in feedback for the scenario or just advice in general to a 27 yr old that has been reading and studying investments/RE investments and preparing to dip my feet in the water, it would be much appreciated.

Thank you

Be careful with BRRRRs right now. The high interest rate makes them hard to cash flow. You also might not be able to pull your investment out like you plan. HELOC rates are generally prime + % and that prime rate is 6.95% right now. I'm in Calgary, so Edmonton is much better for cash flow, but even then do the math. Unless you find a really good deal, you will not be able to cash flow comfortably.