To Get A HELOC Or Not?
im getting started now...have a property with about 25 plus thousand in equity...wanna rent to own to bring in income from 3 possible different avenues (monthly, buy option down, and equity at final sale)...however i wanna buy a few more properties...i dont really have any cash since i am still in grad school....should i get a t/b then get a line of equity against that particular house? or are there other ways? like unsecured lines of credit? can you get unsecured lines of credit for real estate? its hard to use hard money lenders in my area bc banks are unwilling to negotiate low enough to qualify for hard money lending....if there are such lines of credit what is a good company to use....
Also, from what i understand most mortgage companies will look at 75% of montly income rental as personal income. is this true? if so doesnt this make it easier to get more properties? i dont make much money and my FICO is around 665. Houses in my area are relatively cheap compared to aroudn the US. thanks for all you guys time...ive learned so much from this site its unreal...
eric simons
If cash is your problem: Work to build your credit depth (larger lines of credit). You may consider working with an investor with cash and use your current property as the cash reserve. Develop a short and long term strategy, investigate areas offering affordable housing. When you complete a few partnering deals your cash reserves will increase and you could purchase a multifamily unit as your primary housing.
Good luck,
Eric & Rosa
[addsig]
You can use the equity line as a source of downpayment to qualify for a stated loan. That way it doesnt matter what you make (75% of rent is correct). The big question is can you find a property that make a positive cashflow and you can take the risk of paying for no occupancy.