Pulling Equity From My Primary Residence, Best Appoach?
Refinance?
Home Equity Loan?
Home Equity Line of Credit (interest only payments)?
Which is the best way to use the equity in my home. I plan on using the Equity for down payment on other properties. Equity amout estimated @ 40k.
The home equity line is the best. Refi will create closing costs. Just make sure you pay back the line when you sell the investment property. (assuming you are going to flip) I would not suggest any of the above for a property you are going to hold for any period of time, doing so will just add to your debt ratio, even with positive cash flow.
Where do you suggest he get the equity for a long term deal? Should he wait a couple to few a years to raise the capital (equity)?
I would suggest using his initial cash to either flip or rehab a couple of properties, then use the profits from these deals to purchase long term holds. It just makes more sense to use profit cash for long term rather than cash that costs, if ya know what I mean.
I started with cash, rehabbed a bunch and made a few thou, now I use this cash to purchase new rehabs AND long term investments, and I have my initial investment money back. RE is about growth IMHO. If you just purchase a property or two for long term, thats fine, but you sure as heck are not going to make a living doing it, much less get rich.
My 2 cents worth
That's my plan, and thanks!
Quote:
On 2003-11-20 06:17, telemon wrote:
I would suggest using his initial cash to either flip or rehab a couple of properties, then use the profits from these deals to purchase long term holds. It just makes more sense to use profit cash for long term rather than cash that costs, if ya know what I mean.
I started with cash, rehabbed a bunch and made a few thou, now I use this cash to purchase new rehabs AND long term investments, and I have my initial investment money back. RE is about growth IMHO. If you just purchase a property or two for long term, thats fine, but you sure as heck are not going to make a living doing it, much less get rich.
My 2 cents worth <IMG SRC="images/forum/smilies/icon_smile.gif">