OfflineI have recently found a property that is far below market value. I don't have any cash for the deal, and need to act quickly. I am considering borrowing 4000 dollars for the down payment, closing costs and earnest money and then refinancing the property at appraisal value to pay for fix up and to pay off the 4000 dollars. is this a good idea or not? what are your thoughts.
__________________
What I am looking at doing is refinancing my house at a lower rate,(6.0-30 yr fixed)and pulling enough money out to pay off all my bills, and have enough to put down on a forclosure and make the repairs too, So if I pay off all my bills I save enough to make the house payment if I have to, but I plan on renting it out until the market turns.
good or bad idea?
HELOCs are a good resource for financing investments. You can write off the interest in the same way you can write your 1st mortgage off. I typically use my HELOC on my primary residence for repair costs on my fix-up properties. Once the property flips, I can pay down the HELOC so that I can repeat the process on the next investment property.