Home equity loan

[Tony Sessa]

I have about $60k equity into my personal home. I'm interested in purchasing a duplex around $30-50k. I don't have much to put down as a down payment. Would it be wiser for me to take out a home equity loan on my personal house to finance this deal??? Newbie from Rochester ny I could use some guidance

[Donna Salmiery]

@Tony Sessa The bank may let you borrow as much as 80% of that equity. Just remember there will be costs other than the down payment. I just closed on my first deal and the closing costs were more than they quoted, there was transfer stamps because the state was VA. I had to pay ahead home insurance, there was the appraisal fee, the home inspection, putting electric and water in my name until we place a tenant. Will the duplex need any repairs? I would speak to the bank and see what their terms are: how much do they want down, can they estimate closing costs. And shop around, I found a huge difference between what banks offered. I borrowed against my 401K to get started with my down payment. As long as you can comfortably pay back the HELOC, it is a way to get started.