Hello, first post here. I'm in the military and planning my next move to San Diego and I'm trying to figure out how to position myself to buy another property with very little cash available. I've kind of gotten into the owner-occupied house hacking gamewith 2 properties, here's my current situation:
Current San Diego Condo (too small to move back into): -$200 cash flow a month (on a 15-year mortgage, which I thought was a good idea at the time). $85k equity. Owe $130k, $215k appraised value. $27k HELOC currently with $0 balance.
Newport, RI duplex: +$2000/month cash flow. $200k in equity after intense rehab. Owe $450k, $650k appraised value. No further liens.
Both properties have had tenants for two+ years, so though not ideal, my DTI is ok. Rehab ate up my cash to pay down the HELOC, so I'll have little to use as a down payment when I get to SD.
My problem in the past when applying for mortgages is that the bank wants to see the money needed for closing in an account with all large cash infusions accounted for. They have gone as far as requiring a written letter from my Mom stating that a $1000 wedding gift was not a loan. Is simply having the credit from a HELOC available ok for them?
I'd like to take out another HELOC or home equity loan for the Newport, RI property for my next down payment, with the intent to live in and refurbish before I move again.
Any thoughts about how I can pull it off? Thanks!
