Hey everyone,
I’m posting to figure out what my next step is in real estate. I’m looking to leverage my two duplexes in order to pull the trigger on my next duplex. Need advice.
To give a brief background, in January of 2016 I became a faithful follower of Bigger Pockets. I was inspired by BP to invest in duplexes as my niche and began looking into deals back near my hometown where the economy was growing.
Property #1: Found a 3100 square foot duplex that needed some tlc but for the right price I could afford the repairs. Decided to purchase as is. Although, I encountered a problem. Had the money for down payment and repairs but with lack of credit history I couldn’t get approved by the bank so I had to get creative. Convinced the seller to do a contract for deed with a low down payment and a year and a half later I refinanced so that my name is on the property. I have a loan for $114000 and the property is worth $150000 at the minimum. Both units are rented and I’m sitting well with cash flow.
Property #2: while on the contract for deed for the 1st property, I found a second property that was a 1600 square foot duplex that I negotiated a good price for and pursued a rent to own contract. Roughly a year and some change later I’m officially closing on the $130000 property with an $80000 loan. I live in one unit and the other unit is rented with cash flow.
Now, here's where I need advice. With my name on two duplexes and with my current LTV's on the properties... what should I do to leverage these properties in order to purchase my next duplex? For example, can I pull out a HELOC on them, refinance them, and use the funds from the HELOCS as a down payment for property #3?
Any advice will be greatly appreciated!
Best Regards,
A fellow property investor
