My clients have received a HELOC based on 80% of
appraised value @ 4 1/4%. Then we put them in 3
Rental properties with zero down and rolled the
closing costs into the mortgage. We can do that
because we buy properties below appraised value
so that with the closing costs added on, they still
fall within the appraisal.
I’ve been studying discussion here of obtaining WLOCs based on 70% LTV. Is this LTV calculated on “after repair value,” which is how hard money loans are typically calculated? Or is it based on current appraised value, which would approximate after repair value less cost of repairs? Input from the masters is greatly appreciated.