Home Equity Loan Advice

[Robby Stelly]

Please let me know if these numbers make sense. I'm thinking of taking out a home equity loan of $100k at 4.77% on my house to purchase and investment condo with purchase price of $132k. These condos rent well and go for $1200/month. Monthly HOA is $185. Estimated property tax is $700/yr. The condo needs about $2k worth of improvements before I rent it out. My main question is does a home equity loan make sense considering I'm having a hard time getting a loan otherwise send its only 40% owner occupied. Thank you in advance.

[Brandon Sturgill]

@Robby Stelly wow! 4.77% is nuts...you should be closer to 3% on a HELOC...with no out of pocket for closing...and 90+LTV...interest only payments on a 10 year note...

Are you with a local bank or credit union? 

Why do you want to buy a condo...there are a ton of better things you can do with the cash...