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4. New Mexico STR / Funding options?

mike cruz Amarillo, TX

March 4, 2021

Hello,

Located here in Amarillo, TX. My wife and I are in the process of getting pre approved for a second home. We are 4 hours from the where we would like to list our STR. Angel Fire New Mexico. This small town has cabins and a ski resort and close to 2 other towns. Can someone assure me that this is a good market? Airdna shows it is but i have not paid for a membership to see the real numbers. There are not any restrictions on STR, Fiber optic High Speed Internet, etc. Any advise or help would be appreciated. 

Also,

  We have about 140k equity in our current home. My thought is to pull a HELOC out and used as a downpayment for our fist purchase. Is this a normal practice? Will this work if my numbers work. For, example, if my Daily rate at 70% occupancy covers both mortgage, management, and all other fees (including HELOC payment) should i use this method? Or is this just not a good idea and i need to use cash on hand or traditional finance? I guess What i need most, is making sure i Analyze correctly to make a deal work mainly in this market?

Any advise would help. Thank you.

Mike Cruz 

First time investor (Rookie)