HELOC with proof of income

[Salomon Utrera]

I want to invest specifically in rental properties like AirBNB and VRBO, so I'd like to apply for a HELOC to take advantage of the equity I have in my actual property. I have enough equity to get going, but I can't prove any recent income. Exists a strong probability that you could meet the requirements for one?

[Sam Yin]

@Salomon Utrera

Without know more of your personal financial details, life status, goals, and risk tolerances, I can only offer advice based on your posts...

Consider selling the property. Take all the money and purchase a small multifamily using DCR loan. Live in one unit. Make sure that property cash flows. Meanwhile, get a side hustle or full time job to generate W2. After one to two years, you should be able to gain enough momentum to begin to acquire more real estate. Once it gets going, the capital will snow ball enough to get into those STRs that you want.

This would allow you a place to live while making some cash flow to add into your taxes. The side hustles will accelerate your savings and add into your taxes. Living extremely frugal will save you more capital and build better habits. 1 year, or even 3 years, goes by like the blink of an eye.

There may be other options. But I do not know your exact situation. Without a job income, it will be tough to get your HELOC and/or make another purchase. Others may tell you to find a deal and find partners. Some may tell you to look for owner financing, etc... the plan I laid out is one that I can see is most achievable and realistic before. The others are speculative and if you have never done them, you will likely get discouraged by roadblocks.

In any case, best of luck. Hopefully some may have something solid or may be you can share a bit more detail.