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Updated over 1 year ago on . Most recent reply

User Stats

27
Posts
15
Votes
Shane Bishop
  • Investor
  • Greenville, SC
15
Votes |
27
Posts

HELOC as a Down Payment?

Shane Bishop
  • Investor
  • Greenville, SC
Posted

Hi BP Community,

I have a question from a family member about purchasing a second home and possibly using a HELOC to do it! I, myself, am new to the real estate investment world so I have not looked too much into HELOCs as my wife and I just purchased our first home for a house hack. My dad purchased his home 10 years ago in a nice neighborhood for $220,000 and has roughly $135,000 still to pay. His next door neighbor just sold a smaller, but very comparable home for around $380,000. We were thinking that he could probably sell his home somewhere in the ballpark of around $400,000.


He is currently living near Greenville, SC and is looking to move somewhere along the South Carolina coast. He is debating on whether to sell his current residence or keep it and turn it into a rental property. However, he would need to somehow access his current equity in the home to have enough for a down payment on another home, whether that be through a sale, HELOC, or cash-out refi. What are your thoughts? Reaching out to the community for any and all advice!! We would love your help!


Thank you,

Shane

  • Shane Bishop
  • Most Popular Reply

    User Stats

    71
    Posts
    33
    Votes
    Austin Grant McDowell
    • Realtor
    • Greenville, SC
    33
    Votes |
    71
    Posts
    Austin Grant McDowell
    • Realtor
    • Greenville, SC
    Replied

    Sounds like he has a great set up to be able to attain both in this scenario. HELOCs have come in handy for my wife and I to acquire rentals for cash. This sounds like he has ample enough to be able to contribute to a coastal home. 

    Good luck and let me know if we can help you in any capacity! 

    • Austin Grant McDowell

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