San Francisco, CA · Member since 2016 · 8 posts · 3 votes
Hello,
I'm somewhat new to the forum but not new to investments in general. I own two properties as residences and am looking to invest in cash-flow generating properties. I have $50k in cash and a home equity line of $150k available. How much of a mix of cash and loan would be a safe route?
Starting out here, so I'm looking for a modest monthly incomes of $500-800/month.
Brooklyn, NY · Member since 2015 · 33 posts · 13 votes
10y
@Paxton J. I don't know much about your market but I would say use the HELOC first before the withdrawal period ends. Cash is more flexible so you may want to keep that on hand or spend it last. With 200k as 25% down-payment, you can get up to 800k property, You can then evaluate the Potential Income (Rents) and expenses (debt, utilities, maintenance, etc) of properties at that price point in your area to see if it it worth it. But I know for a fact that you can get more than $1000 with what you have.
One example, I know of someone who purchased a Rochester SFH for 55k (35k then 20k rehab) it now rents for 1300/mo.
Keep us updated with the journey. I myself have access to 100k HELOC and am brainstorming on what moves to make next.
Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
10y
buying an holding a property with an interest only payment heloc would generate great cashflow however at what point would you want to refi and pay off the heloc?
Or do banks allow you to lock in a heloc at a certain rate over 30 years and pay amortized payments?