FHA rental owner - journey to second rental property

[Will Driscoll]

Hi Everyone,

I purchased my first rental property at 23 years old (2018) in New Hampshire with the strategy of house hacking (3 units, 3 bedrooms each).

I cash flow fairly nicely, as I also rent out the 2 spare bedrooms in my apartment.

I’m actively searching for my next rental property but want to buy it with the banks money, as sourcing 20-25% down is not quite in the cards for me during this hot RE market.

Does anyone have experience doing a HELOC? Is it difficult to find lenders that do above 80% LTV? I presume I have about 20% equity based on market conditions and comps, but that doesn't leave much meat in the bone for traditional HELOC.

Thank you!

Will Driscoll

[Ryan Iskierka]

If the property was purchased using an FHA loan, why don't you refi into a conventional home loan and then go purchase another property using the FHA and house-hacking the new property. If you are already renting out rooms in your apartment, why not rent your room out, cash flow even more and then continue to repeat the process.