Originally posted by @John Ching:
Ty D,
I like your approach of using your LOC and CC in conjunction to buy and fix/flip/rent properties. Just be sure to keep your lines of credit and payments straight! Hahaha...But seriously, keep in mind how you would utilize that CC with regards to paying for things.
Will your contractor take CC for payment? Or, will you utilize convenience checks to access the amount available? Keep those extra fees in mind as they will add up.
As a mortgage banker, I'll tell you it's easier to refinance a traditional investment property (NOO or Non-Owner Occupied) with at least 50% equity. 75% is doable, but at 50%, restrictions and guidelines become more favorable. Lenders usually allow rental income to be used in qualifying at the 50% mark, although 2 years of rental/lease income history are usually required.
Of course I'm referring to conventional lending, whereas private money will come at a higher rate albeit with more flexible terms.
Good luck! Hit me up if you have any further questions with regards to lending.
Cheers,
John
John thats awesome to hear about the 50%, instead of buying 4 properties with 25% down maybe start with one or two with over 50% down. I will talk to my bank that im working the LOC through and see what they think, nothing ever hurts to ask. Thanks for the input and extending the invite to contact you.
