Home Buying in Atlanta>Question Details

Navada, Both Buyer and Seller in Georgia

If I am purchasing homes for investing purposes, and these properties already have equity in them, how soon

Asked by Navada, Georgia Wed Apr 16, 2008

after purchasing the property can I take equity out? Just say if I wanted to use the equity toward repairs/renovating the home for resale!

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I always ask for the equity LOC while the lender is processing the initial application. This way you don't get hit with 2 charges for appraisals, closing costs.
1 vote Thank Flag Link Thu Apr 17, 2008
I don't know that there is a time when you can not utilize the equity to make repairs. You should check with your financial adviser or CPA to obtain info regarding any tax remifications.
1 vote Thank Flag Link Wed Apr 16, 2008
You can secure an equity line on the investment property as soon as you would like. When selling the property and considering a 1031 exchange, the equity line will be listed as a debt to be paid off.
Web Reference: http://www.atlas1031.com
0 votes Thank Flag Link Wed Apr 16, 2008

Underwriting criteria vary from lender to lender. My suggestion would be for you to contact the lender or lenders you are using on the purchase of the properties to ask them what thier guidelines are. Be aware, I am seeing a nearly across the board tightening of 2nd loan and HELOCs for investment properties that make it increasingly difficult to access additional equity.

I have developed relationships with a number of lenders that provide investor, renovation and construction loans, feel free to click on my profile to contact me if you would like me to send this information to you. Good luck!
Web Reference: http://www.kennycook.net
0 votes Thank Flag Link Wed Apr 16, 2008
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