Buying a Duplex/Triplex using a HELOC

[Zachary Blomberg]

Hi all! I am trying to get into real estate investing but lack the capital to do so. I am considering using a HELOC to free up some equity from my home in order to cover the down payment of the new property. I currently owe $350k on my mortgage, and the home is valued at over $675k, so it seems more than feasible. I'm wondering if any of you have done something similar and/or have any advice to pass along. Thanks!

[Anastasia G.]

@Zachary Blomberg Absolutely great way to utilize your equity, that what we do with my clients.

Contact local credit unions - they typically are the best when it comes to HELOC terms. Please note, getting HELOC is the SAME process as if you were applying for mortgage - credit/income/DTI/jobs matter; You max line will depend on your total monthly debt in relation to total monthly income. Some credit unions have zero % intro rate and might be able to lend up to 100% LTV...(in NJ we do these). There are no closing costs.

Once you get a HELOC commitment contact lender of your choice who does DSCRs (investment cash-flow) loans and use that HELOC to purchase an investment property. Feel free to reach out with any questions. Best of luck! :)