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Updated 3 months ago on . Most recent reply
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Heloc / Refi
Newbie here- I haven't identified any specific assets yet but I'm looking at 4plex or smaller. My strategy for getting started is to use a HELOC for my down payment and all other upfront cost and reserves, then refinance as soon as possible to get the fixed, lower, interest rate. I'm just waiting for the credit union to get the appraisal setup so I know exactly how much in funds I have available. I know cash flow is tough to come by right now, even harder when adding in the HELOC to the DS, so I'm curious about what it would take to refinance a property on closing day? I think I read about some deals this strategy in one of Ken McElroy's books but not sure if that's even a real option or just a good line to add to a book. What criteria would you be looking for in order to qualify and what are the chances of pulling this off?
Thanks
Most Popular Reply
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- Real Estate Consultant
- Mendham, NJ
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HELOC is not what it used to be because HELOC rates are so high right now. You have to think about a HELOC for what it is also, a second loan on your primary residence. It can work, but not as easily as it once did. Some advice on HELOCs:
Only use 50 percent of the total amount you have available and earmark 15k of that for reserves. So you have 1/2 - $15k available to use.
- Jonathan Greene
- jonathan@trustgreene.com
- Podcast Guest on Show #667
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