HELOC and House Hacking Rookie

[Nikki Grassmann]

Hello all! 👋

I’m new here and hungry to learn more. Below I’m going to outline our current position and the outcomes we’re working towards. If anyone more seasoned in real estate investing has any advice I’d love to hear it! I appreciate any and all input ☺️

So I own a home purchased in 2015 in an area where home values have exploded. I have a beautiful interest rate, 3.25 I believe, and owe a little less than 170k. Houses in the neighborhood have recently sold for between 480k and 560k. Another renovated home has been listed at 640k. We have remodeled since moving in and my house has a little more square footage than the ones that sold and also has a pool.

Here's where we would welcome any and all feedback. Husband and I are wanting to do a HELOC. That said, with the equity, we would like to put a down payment on a multi family unit, rent out one (or more!) and move into one unit to house hack it while long term renting out our home. We know the numbers have to work with long term renting however if we can acquire 3 or 4 units in an area that allows short term rentals we are managing a short term rental property and would like to host a property we own.

Specific questions are:

Is it possible to have a HELOC and qualify for a second conventional loan?

I heard about a program Fannie Mae and Freddie Mac are launching in November where you can put down 5% and use projected income from other units to help your DTI when qualifying for multi family units, does anyone have more information on that?

Would you consider a commercial loan for the second property?

Is there something you think we may not have considered that we should consider?