Starting Out - Financing From Home Equity

[Mike S.]

Hi All - 

Not sure if this is the best place to post this but I couldn't find anywhere else more appropriate. I have a Owner Occupied Duplex and I am really struggling with how I finance my next opportunity. Like I need some cash! I am starting with small multifamily however if something came along bigger, I would consider it if the numbers were favorable. I'm particularly interested in cash-flow assets however wouldn't turn down solid appreciation. 

My duplex that was just appraised at $500k and my 1st mortgage balance is $286k with a 30 year fixed rate at 3.7%. Most lenders I have spoken to require a 25% down-payment for non-owner occupied investment properties. Given this, how do I best utilize my existing equity to obtain the cash needed to finance my next opportunity  ?  

Specifically, I'm looking at folks that have done this in the past and can offer first hand advice on what works best given the options.

Thanks.

[Edward B.]

@Mike S., you should easily qualify for a $100k HELOC or more if your financial situation is tight. I would use that money to fund BRRRR deals to turn into rentals or rehabs to generate cash for rentals. Don't use it for a down payment or you will quickly find yourself in the exact same situation you are now.