All Forum Posts by: Akshay Wattal

Absolutely, @John B Clark, that's a very important point to evaluate the break-even point with the points. Appreciate your inputs here, thanks!

@Vincent R. - Yes, that's exactly the conundrum here, buying equity at a cheaper cost (HELOC) vs minimizing the amount at 5.5/6% (or even not using it). Reading through the posts here is providing me with a lot of clarity. Thanks for sharing your thoughts! :)

Thank you @Bruce Woodruff for your input. Wow, interest rates were >15% , can't even imagine what that market looked like. This definitely makes me feel better about the current rates. 

Yes, my goal is to hold the properties I buy for at least the next 4-5 years. The specific property I'm looking at is that perfect balance with cash flow and appreciation. Thanks again!

@Malcomb Stapel - Thanks for the recommendation. Totally agree, that's a fantastic option, especially with the current market conditions. 

@Larry Turowski - Thank you for your guidance. I was so focused on the cash flow/CoC% on this property, that I didn't realize having 5 deals aggregated would likely give me better ROI instead of 4 deals, so from that perspective it's important to conserve cash. Thank you and again appreciate the input here.

Hi Folks!

New to real estate investing. My lender told me that the rates changed again this morning (80 basis points), so looking for recommendations here on which option is more sensible - using HELOC to buy all cash OR one of the below loan options?

Purchase Price: $170,000

Option 1: 20% Down / Loan Amount $136,000.00, 30 YR FIXED

6.00% charging 1 point or $1360.00

5.500% charging 2 points or $2,720.00

The breakeven point between the two options is 2.7 years or 33 mortgage payments.

Option 2: 25% Down / Loan Amount, 30 YR FIXED

5.750% w/o points

4.990% charging 2 points or $2,550.00

The breakeven point between the two options is 3.5 years or 42 mortgage payments.

Option 3: Use HELOC funds to purchase the property all cash with %2.55 interest only

With this option, I can always refinance when the interest rates get better in the next couple of years hopefully. However, on the flip side, this limits my ability to buy more properties.

Thoughts or recommendations?

Thanks!

Hi BP Members,

New to this forum, and recently bought my first investment property in Indian Trail, North Carolina. I'm an out-of-state investor and was looking for recommendations on a good property management firm that provides excellent service to tenants and charges reasonable monthly fees. Do you have recommendations of folks that you have worked with in the past and have had a good experience with? 

Thanks and appreciate the help!