Newbie- Looking to buy first investment property

[MRoberts03]

I am looking to buy my first investment property and I want to use the equity in my home to buy my first investment property. My info: 27 years old, own a home worth $230,000- owe $135,000, yearly income of $40,000. I want to buy a triplex listed at $225,000. Problem is my bank (credit union) has stopped issuing loans for investment properties.

I have done some research and found that I should take a home equity line of credit. Then use that money as a down payment on the property and take a loan out for the remainder. Two questions: 1. Is this sound advice?, 2. What bank should I use for the remaining loan?


Thank you,

[Orkibi]

1. Is this sound advice?

yes it is provided you can add value re finance and free your house.

2. What bank should I use for the remaining loan?

Use a good mortgage broker who will know which bank to approach at the first place. Note: you can spoil it for yourself by going directly to the bank and been decline do to not proposing the deal the right way.

[Dissindat]

You have posted in the USA forum. Are you looking to buy in the USA? 225K for a triplex is super expensive depending on where you are looking? Are you sure you want to spend that much??

[mattinvestor]

Where are you buying your triplex? The price is pretty high, but it all depends on a state, of course. And I recommend you to use a mortgage broker to get the best deal on a loan.

[ktmchris]

I could get you a 6plex that rents for 650 a unit in a good neighborhood for 225K out the door. In less you are looking in a really nice or expensive area, that's way too much for a triplex

[elisten]

Banks have stopped giving loans for properties because of the foreclosure and the short sales they have been bidding around.
Another option is that .. you can spend on a RTM house on your own plot or a plot for rent ...