HELOC or not to HELOC?

[Phil Char]

Hello BP community,

Newb RE “investor” here looking for some advice. I stumbled upon BP years ago but only now have decided to move forward with getting in to Real Estate.

I currently live in the house I grew up in...here in Brooklyn New York with my mother. The mortgage was paid off several years ago but we still have a HELOC that my dad took out w/ 43k left to pay. I forget the original loan amount but when I got involved with the finances before he passed it was up around 50k. The mortgage was never in my name but the deed has been updated to my name alongside my mothers. The home is worth at least 575k according to the last Department of FINANCE property tax statement. Honestly, might be worth more now.

After reading up on the forums and listening to the podcast I'm wondering if my plan sounds like a good one. I'm thinking about taking another HELOC against the home. Then:

1.Do necessary renovations on the house including finishing the basement which will bring in rental income especially if we can get 2 bedrooms down there.

2.Pay off the current HELOC since it's closed and we can't pull any money from it.

3.Lastly, look for and purchase a turnkey MF property OOS w/ tenants in place. Of course, I would love for a PM to manage tenants and space while I'm here in Brooklyn. This way I avoid doing a FHA loan and pick up a positive cash flow property out the gate.

Markets I’ve looked at so far include OHIO, North Carolina and New Jersey. Posted on the FB book but figure I’d post here as well.