Lines of Credit
Which line of credit is better when investing in buy and hold single family rental properties. The homes i am purchasing will be bought all cash. I planned on using a cash out refinace after the property is appraised to pull some cash out 75 to 85 % LTV. The house would then be put into a mortgage and the funds would be used to pay of the line of credit. The remaining funds would be used to purchuse another home all cash and the process repeated. The homes i am aiming for are under $ 25k. Iam aming for homes that need cosmetic work with no major structual work needed. I am a new investor just trying to get general information. Thank You
Thanks for visiting our site and posting on the forum. It sounds like you’re off to a great start in the research phase as a new investor. Here’s an article I think you will find helpful on cash out refinances. https://fitsmallbusiness.com/cash-out-refinance-guide/
The type of line of credit you choose and qualify for depends on the type of property you own. If you own your primary residence, then you could look into getting a HELOC. If you own an investment property already and have some equity in it, you could apply for an investment property line of credit. Here’s a link to our article on investment property lines of credit including where to find them and what kinds of rates and terms you can expect. https://fitsmallbusiness.com/investment-property-line-of-credit-loc/
All the best and keep us up to date on your real estate investing journey.