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Updated almost 8 years ago on . Most recent reply

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16
Posts
9
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Robert Sapienza
  • Sewell, NJ
9
Votes |
16
Posts

First rental property

Robert Sapienza
  • Sewell, NJ
Posted

I am brand new here to bigger pockets although I have been listening to the podcast for a few months now. My question is pretty basic. My home is paid off (have full equity). Is it a smart/good idea to use a home equity loan against my primary residence to purchase a rental property? If so should I only use home equity for the downpayment and mortage the rest, keeping equity in my primary home available for a second rental come time? I basically am looking for advice on how to best utilize the equity in my free and clear home. I have purchased and flipped 2 houses within the past 10 months in Philadelphia (just getting started) and using my home equity for that made me very uncomfortable (used hard money). I feel that using a home equity loan on my primary house may be a good idea for a rental being I would  need no money out of pocket. Appreciate any feed back. Thanks!

Most Popular Reply

User Stats

192
Posts
97
Votes
Joseph Catalano
  • Rental Property Investor
  • Lewiston, NY
97
Votes |
192
Posts
Joseph Catalano
  • Rental Property Investor
  • Lewiston, NY
Replied

@Andriy Boychuk it is just a great way to purchase property.  As long as you remember that you are basically dong a 100% finance.

  • Joseph Catalano
  • Loading replies...