All Forum Posts by: Kyle Castaneda

@Daniel Pierson not local but PenFed will accept heloc's on investment properties

Hello all - 

I am in search for some advice. 

I currently own 1 duplex, which I bought right before the pandemic in 2019, and is working out great for me. I am very eager to continue to grow my portfolio, but am conflicted due to the current real estate market. I have enough money for a down payment (leveraging HELOC on my rental), and want to purchase another investment property.

My question is this: should I look to purchase a new property despite the current competitiveness on the market, or should I continue to save and wait until things calm down?

Hoping to hear what you would do in this scenario!

What bank are you using to get the HELOC?

I am currently in process with PenFed, they were the most flexible one I could find. I am getting a line of credit on my current investment property in order to purchase another investment property.

If they keep giving you pushback, I would consider PenFed as an alternative. 

Hypothetical scenario for the BiggerPockets community here:

You have $50k for a downpayment, and you're looking to purchase an investment property. SFH or MFH, doesn't matter. Where would you be looking to purchase an investment property based on that budget, and why would you choose that area?

Appreciate any and all responses!

Cal Coast Credit Union based out of So Cal are accepting new HELOC's on investment properties as long as it's a SFH

@Dan Hunter thank you for this recommendation, I am finally getting setup through Cal Coast after dozens of calls to local and national banks

@Luke G. searching for local banks is a great idea! I’ve been looking at national banks, time to go smaller

@Kimberly Carver I figured that was the case for the gift, I would assume he would have to be in the title.

I actually looked into TD, and unfortunately they don't offer HELOC services in CA

@Bernadeau C.I’ve been doing some reading and have read that banks may not accept a gift for a down payment on a house that’s an investment property...is that the case in your experience? 

@Bernadeau C. thank your for this!

I have looked into PenFed, and the 2 main reasons i haven’t moved forward with them are that the rate is variable (could get as high as 18%) and they told me it would take 60-75 days before my funds would actually be accessible. 

Would the promissory note be put together with the loan for the house? or is that more so a binding agreement between me and my father?