@Justin Bauer - Thank you for your response and advice! Will firm up a HELOC asap and get that money working for me ;) . The general consensus from the other HELOC threads advise to go through a small local bank or credit union, so will start the hunt there.
@Cason Acor - This sounds very inline with what I have been reading - thank you!
@John Leavelle - Thank you for detailing your process!
- Is there a specific reason you use the HELOC to cover down payment, closing costs, holding costs, etc?
- Is there a general guideline on when you can/should start the refinancing process?
Also, I came across this podcast that has suggested the 'BARRRR' method to incorporate advertising as soon as reasonably possible so that you can potentially write off your rehab cost:
- any cost incurred before advertising for rent is a capital improvement which will be depreciated over 27.5 years
- incurred costs after you advertise for rent, you have the ability/potential to write the cost off as operating cost
This info is a bit over my head since I'm still new, but thought I'd share and welcome thoughts.
@Perry Farella - Thank you! HomeStyle is brand new to me (yes, new knowledge!). Say for example, I go the HomeStyle route, I would either need cash to pay the 15% down, or I could use the HELOC which would lessen the amt of debt on my primary residence. Is this correct?
Does the HomeStyle loan cover only rehab cost, or it includes the rehab cost with the mortgage?
Thanks again for all your comments !
