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Updated about 22 hours ago on . Most recent reply
Need Deal Advice!
Hey BP Fam!
I need your advice! I have a lot of equity in a rental property in FL ($500k+) but I am trying to find creative ways to purchase a duplex in NY. I haven’t had luck getting a HELOC because my FL property is a rental and a conventional loan requires a big down payment plus reserves and closing costs. I don’t have much equity in my current primary yet since I just bought it last year. The duplex I want is only listed at $200k. I applied for a HELOC through Figure since I heard they will lend on investment properties. Does anyone have experience with this company or know if this is legit? FIGURE approved me for up to $186k with a 4.99% origination fee and an 8.5%-8.99% 30 year fixed HELOC. Thinking about making a cash offer on the property and buying it outright. Then refinancing later for a lower IR. The rents are stated as $2000 & $1175 for each unit respectively. The monthly loan payment would be $1559 and it doesn’t appear to need any renovations immediately so low on CAPEX up front. Does this sound like a smart move? This is my first time doing anything like this. I own two homes I purchased with 30-yr fixed VA loans. I appreciate any advice!
Respectfully,
Anthony
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Quote from @Anthony Michael Hamza:
Hey BP Fam!
I need your advice! I have a lot of equity in a rental property in FL ($500k+) but I am trying to find creative ways to purchase a duplex in NY. I haven’t had luck getting a HELOC because my FL property is a rental and a conventional loan requires a big down payment plus reserves and closing costs. I don’t have much equity in my current primary yet since I just bought it last year. The duplex I want is only listed at $200k. I applied for a HELOC through Figure since I heard they will lend on investment properties. Does anyone have experience with this company or know if this is legit? FIGURE approved me for up to $186k with a 4.99% origination fee and an 8.5%-8.99% 30 year fixed HELOC. Thinking about making a cash offer on the property and buying it outright. Then refinancing later for a lower IR. The rents are stated as $2000 & $1175 for each unit respectively. The monthly loan payment would be $1559 and it doesn’t appear to need any renovations immediately so low on CAPEX up front. Does this sound like a smart move? This is my first time doing anything like this. I own two homes I purchased with 30-yr fixed VA loans. I appreciate any advice!
Respectfully,
Anthony
If this property is truly a unicorn; that is just priced way below market that nobody else has realized, the. It is probably worth paying the quoted interest and points to obtain ownership. However, with information to sellers so readily available these days, it would be an unusual situation indeed for a property with no issues to be offered at so a low gross income multiplier.
- Don Konipol
