Loan or Line of Credit

[Laverne Moore]

Just starting out.  Using equity. Should I use a Loan or Line of Credit? Should I use a Mortgage Company or Credit Union? In the Houston Market, should I fix and flip or house hack a duplex? 

[Scott Johnson]

Quote from @Laverne Moore:

Just starting out.  Using equity. Should I use a Loan or Line of Credit? Should I use a Mortgage Company or Credit Union? In the Houston Market, should I fix and flip or house hack a duplex? 

 Wooooooah! Loaded question(s). Lemme just hit a couple of key insights:

First, I'd educate yourself on identifying trends in the Houston Market and figuring out what strategy to use: Employment, Jobs Growth, Median Home Price Change and Rent Change are a few examples. That'll help you nail down your strategy. Post your findings here so we can help confirm your findings!

Loan are credit line is based on your strategy, but I'll just lean toward Long Term Rentals, since that's what I know best. I like mortgages as opposed to credit lines because the interest is predictable amount and I can create my own amortization table to confirm the amount that I'll pay. Credit lines are an accounting nightmare because their interest is calculated daily based on the balance, and if you're taking out micro amounts it's hard to predict.

Mortgage company vs Credit Union is based on their willingness to lend on your strategy, so that goes back to numero uno. 

Hope this helps!