I wondered if I'd lost my mind

[Aaron Howell]

I recently closed on two separate properties.  Property 1 closed November  23rd on a townhouse in my neighborhood using a Heloc on my Primary residence at $165,000.  I was able to get a line up to 100 % equity on my Primary with a small, local bank that does that type of line with high net worth individuals.  I spent about 4 weeks and $8K renovating it.  It rented this week (after 6-7 weeks on the market) at $1495/month which gives about $480 cashflow after expenses each month.  A similar unit sold for $30K more in less than 30 days after my purchase.  

Property 2 closed December 21st in Parma, OH using an unsecured Line of Credit from Wells Fargo at $85,000 with agent @Brandon Uehlein .  The house needed about $2K in renovations and rented in about 3 weeks at $950/month which gives about $250 each month in cashflow.  The Holton Wise Property Group was on cruise control getting things set up and getting a tenant in.

Along the way I really wondered if I had lost my mind. Both loans were going on simultaneously and neither lender was very happy that I was purchasing the other property. The small local bank drug its feet in redoing my primary HELOC (75 days start to finish) which slowed the local purchase.

With the Wells Fargo line of Credit costing 8.5% interest I did a balance transfer for about 90% of the balance to a credit card.  I paid 3% on the transfer ($550) and took a little bit of a hit on my credit but I get 0% until July 2017.