Home equity loan - Posted by Ricardo


#1

Posted by Sam Sadat on January 03, 1999 at 22:26:09:

This is a great time to borrow money for RE investments. So long as your return exceeds that of your ineterst rate, you’ll be fine. And this isn’t hard to accomplish when the rates are so low.


#2

Home equity loan - Posted by Ricardo

Posted by Ricardo on January 01, 1999 at 22:16:50:

I was thinking taking a home equity loan and use that money to put down on another house. Is this a good ideal?


#3

Re: Home equity loan - Posted by Dave T

Posted by Dave T on January 01, 1999 at 23:49:32:

What is your plan for the new house? If you want to buy and hold for rent, will the income pay your debt?


#4

Re: Home equity loan - Posted by Tom in NE

Posted by Tom in NE on January 02, 1999 at 09:27:29:

I bought a 4-plex with a home equity loan. It’s worked out great so far. As long as rents are paid on time. Even if one goes empty the other 3 make my payments. With a single unit keep enough in the bank to cover you for 2 or 3 months just incase.


#5

Re: Home equity loan - Posted by reif

Posted by reif on January 02, 1999 at 22:08:07:

Seems to me a Home Equity Loan is just OPM.

BUT . . .

You have to remember to figure in the costs of the loan against your investment property, not your personal property, just like you would if you borrowed it against the investment propety.

I miscalculated my monthly payments on my equity loan, and I’m gonna be flat instead of about $150/month positive like I thought.

Not life threatening, but disappointing.

Reif