All Forum Posts by: Alex Duarte

Hello BP community!

As the title says... I'm having trouble accessing equity on my primary residence. I've tried applying for a HELOC recently (2 different banks) but our DTI ratios are too high and paying off the minimal debts we have won't have much of an impact. I was wondering if there are any alternative HELOC or loan options? We don't want to refinance since we did a year ago and we like the monthly payments that we currently have.

The reason we are looking to tap into our equity is to construct a 499 sq.ft addition (master bedroom) that would produce rental income once completed. 

Any advice or direction would be greatly appreciated. Thanks!

I just read this article online and it sounds like you may have some talking points. I would discuss with the property manager and see what they are willing to work with you on.

Here's the article I read: https://www.rentecdirect.com/blog/construction-on-rental-properties/?amp=1

What outcome are you hoping for?

@Basit Siddiqi That makes sense! So the only huge benefit for them to seller finance is to avoid paying the huge tax bill all at once then vs paying it throughout the agreed upon terms?

Sounds great! 

I'd love to connect. I see you do financing, I'm looking to learn more about commercial loans and lines of credit.

Hello,

I would like to network with people who are interested or currently investing in Lancaster, CA. I currently own a duplex in the area and plan to purchase a 5+ unit building in 2022. 

If there are any opportunities to partner up on a deal, pass along a deal, or just share experiences that would be great. 

I agree with Michele. The biggest drawbacks would be the lag time to get the unit certified/pass inspection. Otherwise it's relatively easy after the fact. I would ask the housing authority if they have any incentives for owner's who participate in the program. I have 2 section 8 tenants and haven't had any issues yet. The newest tenant of the two, was able to pay $250-300 above what fair rents were in the area along with the HA offering me a $1k incentive to pick them. 

@John Philip Eugenio

Thanks for the information. You should have no problem accomplishing this then. The only thing left to figure out is if your income can support the next purchase at 0% down while holding the two properties then. The lender should be able to use the income generated from your rental property (usually 75% of rents, unless you provide supporting docs for actual net income).

Lastpy, If I were you I would compare the two options, HELOC or Cash out refi. This would depend on what plan you have for your further investments.

@John Philip Eugenio

Congrats on exploring options for your next investment!

I have a few questions for you.

1. Are you doing a cash out refi or just switching to conventional?

2. Is the main reason to use VA on your next primary purchase to put 0% down?

3. What is your current LTV on your rental property?

Some lenders require 80-75% LTV if you intend to cash out.

They want out of investing entirely. They would like to have the cash liquid. 

 I'm currently in the process of moving back to OC, most likely will be settling down in Orange. My office is in HB so I'm always local.