That typically results in a higher payment and an open end mortgage (Credit card) versus cash in the bank that can act as an Asset and PITI reserves where a Heloc cannot.Feel free to reach out if you have any questions, I enjoy helping and talking REI.

@Sean Conroy, this really depends on two things: first, the land zoned in a way that you can subdivide and build more units (question for building/zoning department) and second, financial returns on doing this versus using the capital to buy.New construction certainly has its advantages on the operating side, and can often get a premium to remodeled, older units.  

Best bet is talk to wholesalers and have a real good agent that can dig properties out, and be prepared to buy on spot in good locations and anything else be a tough cookie.

As an asset, it will keep going up, but with your rate versus the current rates, refinancing isn't an option so you could only use a HELOC.Based only on what I read, I would hold onto it because it's a good asset in a high-appreciation market.

Your best bet is to ensure that there are no material modifications that would in any way harm or even moderately delay the ability to rent it out and qualify as a normal SFR (one lease, one family) or sell on the market to an owner-occupant

Good Morning! I see a lot of conversation about HELOCs and HELs - but not a whole lot about a second mortgage as a option to get started. About me: owner of a primary residence, looking to get a multifamily (preferred...

I am looking at multifamilies in NYC versus single family homes in Jacksonville, FL (yes there is a significant price difference), and I cannot decide between the two.Factors I am considering.. 

Adding in court fees, attorney fees, no rent during the process, and any turnover expenses versus just eating the plumbing fee. 

I’ve been working in this space for over 20 years, and I’ve seen firsthand how choosing between neighborhoods versus suburbs can significantly impact your returns.City Neighborhoods: Wicker Park, Logan Square, and BridgeportIf you’re eyeing Chicago neighborhoods, I’d suggest considering areas like Wicker Park, Logan Square, and Bridgeport.

@Daniel DeBruin, this is really all market dependent and how much you want to spend versus how much it will impact both the rent you can achieve as well as the quality of tenants it attracts.When it comes to design, it is all a bit personal opinion, but I will say: contiguous flooring always trumps mismatched, hodge podge flooring.