1st Investment Advice

[Matt Bilewicz]

Looking to make my first investment and I find myself gravitating toward the following strategy/theoretical scenario. How does this sound? What questions should I be considering?

1. Purchase + rehab with HELOC "cash." This way I can pay cash, close quickly, and command a better purchase price.

2. Cash out finance. Having initially paid cash with a HELOC, this lets me avoid a double closing.

3. Pay off the HELOC balance.

4. Repeat.

Thanks in advance for the insights and advice.

[Sean Lambert]

yes, closing with cash is cheaper and easier (no bank and appraisal).  After you rehab, you'll need to close with a bank, which will likely require an appraisal.

I've used HELOC funds to do this before. Keep track of what you repaired/replaced/remodeled, so you can let the appraiser know how you added value.