Aspiring real estate investor in Miami

[Sean Gradin]

hey BP!

I have been studying real estate for a few years now in an effort to decide which niche would fit my family's lifestyle. My plan is to invest in multi-unit properties starting with a duplex/ triplex.

I am currently AD Military and living in Miami where I own a home with some pretty solid equity. The home is on a double lot (.41 acres) near Miami international airport in the only part of Miami that feels like a small town.

I am leaning towards taking out a Heloc for a down payment on a duplex OR heloc, rehab the bathrooms and upgrade to hurricane-proof windows and then do a cash-out refi and use that as a down payment for a duplex. 

I am looking for some input and am happy to share more details on my situation if needed. thanks in advance.

-Sean

[Gabriel Amedee]

Hey @Sean Gradin

Personally I think a HELOC isn't a favorable option unless you plan to constantly use the money.

If you only plan to pull out money once I think it is way more favorable to do a cash-out refi from the beginning. Better to lock in a fixed rate than an adjustable one that relies on the prime index. 

You said you already have some solid equity, is it not enough for a down payment? The lenders I know allow you to pull out up to 80% of the property value with a cash-out refi; with $100,000 down you can buy a great cash flowing MFH in Miami. 

Feel free to reach out if I am missing any details, happy to answer more questions!