All Forum Posts by: Nicholas Aramouni

Hello all,

I’m just starting my investing journey, and I can’t seem to make sense - or clear distinctions-  between a Heloc and a cash out refinance…

In general, what are the differences between the two ? And also, what are the pros and cons to both?

Curious to know - The more details, the better !

Thank you in advance.

yes this is true. What we were considering here was having my partner (who I don’t live with, just in reference to mortgage opportunities) buying the first unit and myself buying the second unit. We can apply separately for mortgages being that we aren’t common law or have a relationship on paper. I probably should have qualified this earlier in the question… what are your thoughts here. 

Love to see a fellow Albertan on here by the way :)  

 Hello. It is all cash and house hacking is not a possibility since I’m investing outside my home town! Any perspectives here on the original question?

.

Hello Community. 

This is my first post on BP, and I am excited to be here to contribute and learn from the community! I am beginning my investing journey soon and I know this is a great place to start. I've really had no real guidance in real estate investing outside my own pursuit of knowledge. So, I come here with a question, hoping for some additional guidance. Here is the scenario. 

I have enough capital to put down payments on my first two properties, which I plan on buying in early 2023. I am weighing my options between (1) putting a larger downpayment on my first purchase, to gain equity quickly and help ensure cash flow - then of course buying the second unit to follow. Or (2) putting a smaller downpayment on my first unit to maintain a 20% downpayment on my second unit. For (2) I would be able to lay down about 13-18% on my first unit. To summarize some essential elements.. It's important to mention that I live in Canada, and here, they tack on "default insurance" if you own less than 20% of a property. For the type of property I am looking at, it would tack on about 9-10K extra across the mortgage term.  I'm not using any creative financing techniques for these first two units, which means I will certainly be leveraging my income for my mortgage loan (this is why I am debating the importance of a 20% downpayment on the second unit, and eating some insurance costs in the process). 

I'm curious, which option would you choose, and what do you think the pros or cons would be of both? 

Excited to get some perspectives here. Thanks so much in advance for your thoughts!