I currently have a small portfolio of 6 houses in a rough neighborhood. I do sleep rooms with them and cash flow about 1k/house with them. I paid cash for one because I could not get a loan due to it lacking a kitchen. It's worth about 140k. Is it feasable to get a HELOC on the property to fund the down payment on another rental through a DSCR loan?
Paid off rental with no kitchen. HELOC?
byu/OkCan1094 inrealestateinvesting
Posted by OkCan1094
3 Comments
Yeah that’s exactly what a lot of investors do. Just make sure the HELOC terms don’t eat into your cash flow too much and you’ve got decent equity cushion in case values dip
You’re running boarding houses?
Consider a DSCR portfolio loan from a real estate finance company – and consider including new purchases in the loan portfolio. 30 year term, DSCR ratio of 1.2 or higher, low 6% rate with 700+ FICO, up to 75% LTV