Need advice for buying a second investment property
Hello BP Community,
I need some advice for my second investment property. I have been owning a property now for five years, and it is my primary residence. I am interested in another property that is for $450k in a great neighborhood, and it is below market value. I really want to buy this property and wanted to see if i can get your advice on how to go about it. I have a decent idea about approaching this, but I would love to hear some creative financing ideas from you all on how to buy this property. Here is the scenario:
- I have one more person who is interested in putting some money down towards this house. However, we don't want to put 20% down unless it is absolutely necessary.
- A couple of months ago, I applied for Home Equity Line of Credit, so i am thinking about using money from my HELOC towards the downpayment for the second property.
- My plan is to buy this property and rent it out immediately.
My question is:
- Still owning my first property, will I still be qualified for another loan?
- I am assuming investment loans will have higher interest rate, is this true? and any idea as to what percent interest am i looking at?
- How much money will I have to put down?
I would greatly appreciate any advice or comments you guys can provide. Thank you in advance for your help!
Muju