Using my home to fund my next deal...

[Izzy Smith]

Hey everyone!

Newer investor here looking to get some advice. I recently purchased my first home using FHA. It feels great to get in the game but now I need to think about the bigger picture.

My property is a 2 - unit in the suburbs of Chicago that is currently renting under market. I plan on forcing appreciation by making upgrades to the property and paying down the mortgage. My question for everyone is, generally speaking, how have you used your home to fund your next deal? Can you share you your stories of using helocs / cashout refis / etc. to fund your next real estate deal (or stories about the pitfalls in using this strategy)? 

Thanks so much everyone!

-Izzy

[Carlos Valencia]

Hello Izzy, 

Theres still  many things to consider before moving to your next property. You mentioned its a 2 unit property. Once you move out do you know if your rents will cover your current mortgage payment? If it does that will help you offset that monthly debt and help your debt to income ratio. If you just bought it it might be a little challenging to refi our do a heloc as there might not be much appreciation yet. For the heloc/refi you might have to wait a little longer to get more appreciation. Maybe not pay down the mortgage faster instead continue saving for your next property. Hope this helps.

@Albert Bui @Matthew Kwan