The current low reserves are due to putting $50k as a down payment on the primary home we bought, to avoid mortgage insurance.
PERSONAL
Household income is about $100k. Downside is household student loan debt is around $80k. Credit scores: 770 and spouse is around 700.
REAL ESTATE SITUATION
In the duplex we have about 10-15% equity (because bought as owner-occupied financing about three years ago). Mortgage and operating expenses are about $1,100 per month. Rents for total of $1,500. So we are positively cash flowing.
In the primary home, 20%+ equity right now, as mentioned. Downside is that one lender has told us we couldn't get a 95% LTV HELOC, since spouse credit score is under 720.
DOWN PAYMENT
We are saving about $2,000 a month, just will take years before we've got $50k saved for a down payment. HELOC seems like the best route, but we may be limited due to spouse's credit score. I've been reading 401k loans only offer lesser of $50k or 50% of funds. Personal bank loans may be an option? Or hard money lender?
How do investors come up with this 25% down? Seems like without partnering with other investors, REI is very difficult.
Thanks again!