Beginning investor moves

[Matthew Herrera]

Good evening everybody!

So this is my first post besides my introduction post.  I'm looking for some input and suggestions for my plan and maybe get a few questions answered from people smarter than me.  :)

I've owned a single family home for 9 years now.  I currently live here with my two young children.  The original loan was for 147,000 and its paid down to about 117,000.  Current home sales on my block for my exact floor plan have been in the 320,000 range.  

My plan is to get a heloc for a down payment on a new investment property and to rent my house. I plan to use the BRRRR strategy and to hopefully find a deal in my area.

I still have PMI on my mortgage and would like to get this removed.

1. Do i need to refinance to do this? 

2. Can i refinance and get a heloc?

3. Is it possible to put 3% down on my new live in rehab or would i have to put 20%?

Thanks in advance!

Matt

[Josh Kredit-Phelps]

@Matthew Herrera

1. You should be able to get this removed due to equity in the house

2. There is no need to do a heloc if you refinance. You would use the new cash and buy a property with that.

3. Don’t remember 3.

What I would do is refinance your home if you can afford the new mortgage or just simply use a heloc against your current equity.

From there consider long distance investing. Read David Greene’s book with is a bigger pockets book. It’s our bible.

Acquire a property in cash and do what’s called delayed financing (research this). From there you would just repeat.

This strategy is beneficial because you can buy in cash getting a lower acquisition cost. Refinance out immediately, and begin the next hunt.

Good luck