Hey guys,
I've been digging through the articles, listening to the podcast, and I hope to glean from the collective knowledge of the group about next steps in our property investing.
My wife bought a home before the Nashville boom that we now rent short term (100% legal, permitted, etc.) through Airbnb and HomeAway and have been operating since April 2018. Depending on the month, we can expect $2,300 - $4,000 in profit. On the low end, we have about $120,000 in equity on the rental. We have at least $50,000 in equity on our primary residence. Since I'm in pharmacy school (lots of student loan debt), our yearly income outside of the rental is at about $60,000. We have a little credit card debt which will be paid off in a few months with a credit score just under 800.
We really want to buy another property to rent through Airbnb that will probably approach a solid $500,000 that is closer to the city and will probably fetch $5,000 - $7500 in monthly profit. We approached one lender who doesn't do HELOCs on investments and could only offer $70,000 through a cash out refinance. I've seen here that some local lenders and banks can do HELOCs on investment properties. We're hoping to go that route.
Based on the above info, do you guys have any general advice about pursuing HELOCs or whether my plan is wise given our current situation? Thanks in advance!
Neill
