All Forum Posts by: Angela Liu

Originally posted by @Arlen Chou:

@Gerardo Varela think of a HELOC as a giant credit card tied to your property. Once you have that line of credit you don't have to go through a loan process before buying a property.  In a competitive market it makes you look like a cash buyer.  Once you have the property you should "season" the property and then get a stand alone loan on it and pay down your HELOC.  At that point you will have reloaded your buying power and look like a cash buyer for your next property.  Rinse and repeat...

-Arlen

 What do you mean by seasoning the property? The stand alone loan? Can you tell me more about what qualifies as a stand alone loan?

Originally posted by @Sterling Williams:

Originally posted by @Angela Liu:

A lender quoted a 5.5% interest rate for a 30 year fixed conventional (20% down) loan for a first investment property- SFR rental in San Antonio. Is this a good investment rate? Towards the typical low or high end for aforementioned terms?

If it's not great, anyone have recommendations on small local investor friendly lenders/unions/banks?

I would contact a different lender to see if you can get a better rate. Try Brooke Noth with Guild Mortgage, she's an investor herself and gets it's done! She's also a member of BP.

Thanks, @Sterling Williams ! I'll see if I can find her tomorrow. Let's keep in touch.

Can anyone share their experience with using RBFCU to do a HELOC on their primary?

I talked to them about getting a HELOC out of primary home residence. Just wants to see if others' experiences lines up with my perception of them.

Can anyone share their experience with using RBFCU to do a HELOC on their primary?

I talked to them about getting a HELOC out of primary home residence. Just wants to see if others' experiences lines up with my perception of them.

@Andrew M.  I had a hunch it was high.  Caliber Home Loans - a bit large for my liking but they had a rep for servicing most of their own loans and having variety.  I am new to San Antonio so any help great. Pm'ing you.

A lender quoted a 5.5% interest rate for a 30 year fixed conventional (20% down) loan for a first investment property- SFR rental in San Antonio. Is this a good investment rate? Towards the typical low or high end for aforementioned terms? If it's not great, anyone have recommendations on small local investor friendly lenders/unions/banks?

With SA's high property tax rates, is it rare to have a newer rental home in Class A/B areas / good neighborhoods/decent schools with positive cash flow?

(Just moved to SA and looking for long-term buy-and-hold SFR with cash flow (no crazy high cap rates needed) in decent neighborhoods/schools. Not familiar with this area. I'm not yet into any major rehab work. An agent mentioned he buys up mainly newer homes including new builds. Been running rent, expense, mortgage, COC #s and keep coming up with neg or 'no-cushion' trump change cash flow for homes if they are 200k+. Not sure how some of these investors are making any cash flow after some analysis on their house value, expenses, and projected rental income. It feels like you can't have a sufficient monthly cushion unless you find a cheaper house that requires more rehab. Didn't want to jump into the BRRRRR yet. Maybe I'm not tapping into the right areas yet.

I've been talking to investors on BP, a couple agents and PMCs over the past few months and they've been throwing out a ton of different pockets of areas.  New Braunfels, NW, 'outside of 1604' ...there was also some talk about Dignowty (but getting the hunch to stay away for now), Windcrest...Converse, Kirby.  I'm still working my way down this list of suggested areas to figure out where the numbers will start working with my criteria. 

@Bob Okenwa - thanks for the additional info. Appreciate the time. And glad that worked out for you without having to put much capital into the home, in the first place. Interesting note on the lenders being more lenient with a home equity loan...I'd assume with a home equity loan you have to borrow upfront and end up paying two loans right away regardless of when you need it. They might make more money upfront as opposed to the HELOC where I assume you don't start paying and just the interest until you actually use it. HELOC seems a better way of having reserves on hand even if you don't have a property ready to purchase.

Thanks, @Bob Okenwa . I've read up on the basic differences b/w HELOC, home equity, cash out refis. People determine the type largely based on what they intend to do with it. That said, for this particular situation of a new house with the down as the only equity in the house, is there any difference in ease of access b/w a HELOC , home equity loan, refi?

Can you pull out equity on a new-build home after 6mo. to a year from purchase date if the only equity in the new house is coming from the down payment (which is well over 20% of the house value)?