HELOC on rental properties

[Reynaldo Tello]

Hello everyone I have a question I've been wondering about and I can't seem to find the answer I need from Google.So my question is,could I get a heloc on my first house since I'm done paying for it and then buy another house cash with that money and then do the same thing with the 3rd house and so on or are there some set backs or is this even possible. Pros and cons? Would they need a certificate of occupancy from the rentals when trying to get heloc? Thanks everyone...

[Robert Schumacher]

I used our HELOC to purchase an 11 unit complex in cash 6 weeks ago. The bank would not finance the 11 unit building because it was vacant. We almost have all units rent ready and rented by 1/15. Once we have all leases signed, the bank will finance 100% for us.

(We bought with 3 value plays. (1) vacant (2) motivated seller (3) one unit was down to the studs due to roof leak). Seller replaced roof and now the property is almost stabilized which is the key to having the bank finance it. We got a steal on the property or we would not be getting 100% financed.

The ability to pay cash was the key for getting this property. Our cash offer within 4 hours of being listed got a quick acceptance because seller was motivated. Closed in 7 days and they had 7 backup offers.

I hope this demonstrates the power of having your HELOC open and available. This was our 3rd time but patience for the right deal is critical if you want all your cash back out.

Good Luck 👍🏻