I would love to use this the equity property to leverage us getting more properties and starting the method.However, when we reached out to our mortgage broker, he said we’d onky be able to pull out about $28,000 and that our rate would increase drastically (currently at 4.2 on a 30 year fixed).

We expect to close next week.In between I signed a contract for another property, where the seller is the mortgage broker (not the one for the first property) (mmm... may be I should not have done that).The problem is that when I told mortgage broker 1 that I signed a contract for another property and broker 2 pulled the credit he got upset (may be rightfully) because now we will have to disclose that new contract and explain we will be having new debt.

@Anthony Kondorif you can pull it off write a book on it.The only way we got an out of state bank to back off was to take pics of the roof leaks etc etc.

Then went to the county courthouse to pull the subdivision blueprint...which was from 1905!

My trouble will not be in pulling the trigger, I have no issues with taking risks.

Blows my mind what people are able to pull off.

I don't know for sure, but it sounds like an assessor's notation for a mid-level 4-plex, but if you'll PM me the address, I'll pull the field card or public record to see if I can verify it.

@Don NelsonYes, many banks will cap you at 4 properties so it's a good idea to pull the HELOC on one of the first few if you plan on using it multiple times to acquire new property. 

At the current moment, I do not have enough equity in my house to where I would be able to pull out the minimum $25,000 required by the current bank my loan is under.

I have done a lot of business in the area but never pulled the trigger on one for my own.This property is going to require more work than the first.