Came across a pretty good opportunity to buy an investment property for under market value.
I am looking at getting a DSCR loan for the second property, and have been pre qualified by a lender for it.
They are requiring 20% down and 6 month reserve
I currently have about 12% down and 6 month reserve in cash.
I was going to get a partner to co-invedt with me but they are nervous about being a landlord and are getting cold feet.
I currently have over $200k in equity in my main home.
I was thinking about taking out a $50k equity loan to cover the 20% down payment and have a little more in the reserves
Home is $390k, current market value is approx. $430k
Currently have $40k cash plus reserves
Need $78k down payment
Mortgage++ would be about $2500, and the rent market value for property is a minimum of $3000/month.. possibly $3200 or $3300
$50k equity loan would be about $350/month
Im thinking could be a way to secure another property without a cobuyer and if rates eventually go down i can refinance and have an even bigger profit margin
Thoughts?
Take out small equity loan to cover half of down payment required for DSCR loan on investment property
byu/EdLeedskalnin inrealestateinvesting
Posted by EdLeedskalnin