Ok my father wants to buy a foreclosure in Florida for cash. Their asking price is 90,000 for it, my dad is making an offer of 85,000 for it, and will pay CASH.
What i want to ask is, lets say he does get the house and after repairs the appraised value of the home is let's say 125,000 dollars.
My father's plan is too hold this home as a "long term" investment and collect rent for monthly cash flow and not for a quick profit.
My question is though (sorry for the lengthy post) is lets say it does get appraised around $120,000, how would a HELOC work in this situation? Does my father get $120,000 in EQUITY?
If he does get that much EQUITY, how long does he have to pay it back? Cause i want my father to pull out the EQUITY to buy more foreclosures down in Florida.
Greatly appreciated if anyone can answer this important question for me! Thanks!
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