I am looking at scaling my rental home business. I am wanting to add some more rental homes to my portfolio, but I am stuck with the ever big question of how to do it. I have recently come across first position HELOC's that offer a simple interest loan at better rates of 7-8% and then you use the HELOC as your bank account and put all income back into the HELOC to save massive money on interest. I have quite a bit of equity in my own house and don't currently have a mortgage. I know about DSCR loans as well. Some of the HELOC calculators are showing 5-7 years to pay off a 360k loan but obviously you could snowball the loan and buy more houses once the credit limit comes down.
Would you look at a first position HELOC, DSCR, or look at a hybrid situation where you use the HELOC to finance the down payments on many houses and still get DSCR loans on each house? I was just curious what other Red Raiders have done and if there are any Red Raider bankers that can issue first position HELOC's?
Would you look at a first position HELOC, DSCR, or look at a hybrid situation where you use the HELOC to finance the down payments on many houses and still get DSCR loans on each house? I was just curious what other Red Raiders have done and if there are any Red Raider bankers that can issue first position HELOC's?
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