Is This How Some Of You Started?
I have a small house valued around 50,000. The house is paid for and I own it free and clear. Would there be a problem with getting a home equity loan on it and using that money to finance the rehab costs of another home. I would possibly rent the house I have now and owner occupy the rehab. I only have about 4K in spendable cash right now. The little voice in my head says wait and save around 20K and use that for financing the rehab, but that will take time and it is very boring. Any advice is appreciated.
Its not how i started.
I think its a good idea if you can get a low rate. The problem i see with it is that your going to live in the house your taking the money out for. Do you plan on selling the house and getting your money back to pay off the loan in a short amount of time? If thats the case then yes, its a good idea and many people use it as a tool to invest.
I started with a 90K HELOC to finance our first rehab. The project is about 60 percent finished. I bought it for 25K, plan on putting 10-12K in it, and selling it for 60-65K, for about 30K profit. I will then use the profit for repaying the HELOC and as seed money for the next project which I already have my eyes on (actually 3 others, hopefully one will pan out!!)
Quick turnover is the key!
Could you continue to live in your house and get a HELOC for the new property?
Best of luck
Dr Danger
Go to GOOGLE type in ocwen then read awhile. You will answer your own question about how they do business.
Here, try this...
http://www.ocwen.com/vendee/VA_Financing_Program.cfm
Hi. I took Vendee financing 3 years ago. My memory was that the approved loan officer worked with me to make things work. The qualifying was very similar to normal qualifying, from what I remember. My scores were over 700, so that probably did matter.
Talk to the approved vendee lender person for info.