You can access equity of current primary by a Home Equity Line of Credit (HELOC) or refinance.

Property 1:Purchase price - $73,000Mortgage - NONE (Paid Cash)Monthly Rent - $875Monthly Profit - $580Property 2:Purchase price - $65,000Mortgage - NONE (Paid Cash)Monthly Rent - $950Monthly Profit - $750Property 3:Purchase Price - $107,500Mortgage - $80,625 Monthly Rent - $1300Monthly Profit - $435Current Cash Available - $110,000Current Available Equity - $96,500 Cumulative Total - $206,500The available equity was a HELOC loan that was given at 70% LTV so those are real numbers, they would be from property 1 and property 2.The reason im typing this is because I would like to know if there were any builders that could give a rough estimate of building cost per square foot in Kansas City area or suburbs.

I cleared $10k on my first one.We ended up clearing $30k on the second one.The last flip was very stressful for my wife and she wants to keep our finances (HELOC) out of the next one.I am going to look to find a financing partner to cover the carrying costs of the next flip.On a $400k house (average for my area), the total investment would be $85-$95k and would be paid directly to the lender and subs/suppliers, not to me.I can bring the lender, as I have a good rep with the one I use.I will do all the rest.

Hi BP,Im trying to figure out if I should look into using a HELOC on my parents home to buy a rental property in cash.

Hi Jayson, In some cases it can be a great decision.Take a look at the cost of capital the HELOC or refinance is going to give you compared to what you are looking at now.Also look at the income generated/write offs/appreciation that a rental property is going to give you.If it is going to yield you positive results, I say go for it!

I do not have financing set up yet, but my plan is to use an interest only HELOC to fund the ADU.

If the #s check out via savings or heloc, you can pick up another rental income property in a Medium Cost of Living City vs NYC.

Does this affect a cash-out refinance or pulling out equity in the form of a HELOC/equity loan? 

Does this affect a cash-out refinance or pulling out equity in the form of a HELOC/equity loan?

I also dont want to take out a HELOC because of it eating up my cash flow and end up being net negative.