When to HELOC for 2nd deal

[Andrew S.]

Hey community,

I've finished my first deal house hacking and looking for my second deal. I'm looking to purchase a 2-4 unit rental property in Montana with seller financing, or FHA or confidential mortgage.

I'm looking to fund the down payment and renovations with a mix of savings and a HELOC. I have an estimated ~$60k of available sweat equity to use from my house hack. I have $30k of savings and increase it by $3k per month.

Should I obtain the HELOC now before a possible market correction (and possible loss in equity) for cost of $1000 or wait to see if I'll need that additional money at all for deal #2.

If I buy a property for $200k to $400k that needs rehab, I'll probably need additional funds. Just depends when I find that next deal. I assume it makes sense to obtain HELOC now and not use any of the available money.

Thanks!

[Matt Hurley]

If I were in the same position I’d get as much credit as possible so you can take advantage of the next market drop. Even if it doesn’t drop anytime soon, you’ll make that $1k back pretty easily with your first deal.