First I would like to say that I am new to the forum and have read Dean's books. The books and this forum are a great tools for info.
I have a question about buying an investment home with a home equity line of credit and was wondering when the rehab is complete can I refinance the home with a conventional loan to pay off the line of equity? This is our scenario, we have equity in our permanent home and we would like to use that towards our first investment property. Our lender had suggested using a private lender for a loan for 15% interest rate and then refinancing after the rehab but there will be costs associated with paying off the lender early which could be five or six payments. Would it make more sense for us to use the equity in our permanent home for the investment property and if so can we refinance after the rehab with a conventional loan?
First I would like to say that I am new to the forum and have read Dean's books. The books and this forum are a great tools for info.
I have a question about buying an investment home with a home equity line of credit and was wondering when the rehab is complete can I refinance the home with a conventional loan to pay off the line of equity? This is our scenario, we have equity in our permanent home and we would like to use that towards our first investment property. Our lender had suggested using a private lender for a loan for 15% interest rate and then refinancing after the rehab but there will be costs associated with paying off the lender early which could be five or six payments. Would it make more sense for us to use the equity in our permanent home for the investment property and if so can we refinance after the rehab with a conventional loan?
Thank you
John