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Updated 7 months ago on . Most recent reply
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Using Heloc to buy larger multifamily
Will be purchasing a 4plex next year which needs roughly 80 to 100k down payment. Im thinking, instead of a 4plex at 100k downpayment, Ill use 50k of Heloc to add to my 100k for a total of $150k to purchase a 6plex around 600 to 650k. Heloc is around 8.5% interest and deals im looking at are 15% coc self managed, theres a bit of spread. Plan is, ill pay Heloc in a year from what I save monthly. It will allow me to purchase a larger deal rather than a 4plex and be paid within a year. Its not like ill be using Heloc the entirety of the loan. What do you guys think?
Most Popular Reply
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Before proceeding you should become familiar with commercial real estate.
A Quad is valued the same way as single family, using the comparative market analysis approach. A six-unit is an apartment, a commercial property, and is valued using the income approach. The business plans for acquiring and adding value (in other words the BRRRR process) is slightly different.