All Forum Posts by: Account Closed

What if my financing plans are "take out a HELOC which could take 60 days to close and I very well could ultimately be denied for, blowing up the deal." Is it still worth it to submit an offer?

Well, it's America, so you are free to write the offer. And they are free to throw it in the trash can.

¯\_(ツ)_/¯

John, and this is for the lurkers too: Whoever you are reading this, that means some part of you is interested in real estate. If you have the equity, you almost have what most people that want into REI do not have -- ready access liquid to capital.

Go apply for and open that HELOC now. Keep the balance at $0.00. You will pay some nominal fee, like $75/year, to keep the HELOC open with zero balance. $75/year is nothing, and what it gets you is ready to write an offer the second that killer deal you've been waiting for this whole time crosses your desk. Lurkers, go open that HELOC now. John, go open that HELOC so you don't miss out on the next one.

For people years and years away that are just reading this who like the town they live in and will probably be there for another 5 to 10 years or more, go do the NYT rent vs own calculator, and buy a house for you and your family. 5% down gets you in the door of homeownership and off the rent treadmill, and if you get fortunate with appreciation, there's your REI down payment. Dumb luck with appreciation (sometimes it's more research than dumb luck) paired with a HELOC, believe it or not, is one of the most common ways people get started. HELOC funds can make it a cash purchase, or those HELOC funds can be a big fat 25% down payment paired with a traditional mortgage for 75%. What's 75%+25%? It's 100%. Look, 100% financing. Boom, there's your golden ticket, 100% financing on an investment property. Done. Stop messing around and let this be your call to action. Renters are not eligible for dumb luck (or research) HELOCs.

intrigued about using 25% of heloc as down payment and 75% traditional mortgage for rental investment property..so how do you handle the heloc once you acquired the rental...just make normal payments on it and your traditioanl mortgage as well..? whats the steps after you have property regarding the heloc and traditional mortgage anything else need to be done?

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yes can be normal. ive heard tenants offering a fulls year worth of rent but they usually want an extra month free..if you get full payment imagine getting 11k in lump sum on 1000 month rent instead of 12k for full year spread over 12 months.... its all negotiations. Some LL have cash flow issues you never know its all business...id say is rare

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Originally posted by @Jason G.:

@Jeremy England, we saved for the down payment on our first SFH investment property and for a portion of our second. Took out a HELOC on our primary and used it to cover the remainder of the down payment on the second SFH. The third SFH down payment came completely from the HELOC. Our fourth (which we have yet to find) will also be paid using the HELOC and we have around 40k in reserves. Rent covers property manager, mortgage, HELOC interest payments, vacancy, maintenance, and CapEx. Remainder goes into saving for next property plus we are able to put aside almost 3k a month for future investments from our W2 incomes and also our bonuses and tax refunds. So that is how we are funding our investments, all with 20% conventional mortgages. Everything is buy and hold.

i have a Rental that I owe 30k home value of 190k (tenant in place)

i also have a primary owe 200k value is 370k (live here)

which property should i do heloc for to fund 2nd investment property? i should only uses heloc for down payment correct?

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Originally posted by @Keith Behney:

Hello, we purchased a 4 unit in Harrisburg PA, renovated a unit and are trying to rent it but have not had much interest. Can someone check out our listing and give us some critique?

https://www.trulia.com/rental/4025009520-3643-N-Fr...

Thanks!

professional pics better lighting...put your best picture 1st. Are rents comparable? how are comps in your area price wise

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Originally posted by @Mike Reynolds:

Originally posted by @Account Closed:

heres what i got on my roof in south florida where hurricanes come..yikes...need an expert opinion..bought house 3 years ago

Im looking at the wind mitigation report. here it goes

1. Asphalt /fiberglass shingle---permit 02/2014

2. Built up.

3. Plywood/OSB roof sheathing with a minimum thickness of 7/16"inch attached to the roof truss/rafter (spaced a maximum of 24" inches o.c.) by 8d common nails spaced a maximum of 6" inches in the field. - OR- Dimensional lumber/Tongue & Groove decking with a minimum of 2 nails per board (or 1 nail per board if each board is equal to or less than 6 inches in width). -OR Any system of screws, nails, adhesives, other deck fastening system or truss/rafter spacing that is shown to have an equivalent or greater resistance than Sd common nails spaced a maximum of 6 inches in the field or has a mean uplift resistance of at least 182 psf

Minimal conditions to qualify for categories B, C, or D. All visible metal connectors are: Secured to truss/rafter with a minimum of three (3) nails, and Attached to the wall top plate of the wall framing, or embedded in the bond beam, with less than a 1/2" gap from the blocking or truss/rafter and blocked no more than 1.5" of the truss/rafter, and free of visible severe corrosion.

4. C. Single Wraps Metal connectors consisting of a single strap that wraps over the top of the truss/rafter and is secured with a minimum of 2 nails on the front side and a minimum of 1 nail on the opposing side

5. C. Other Roof Any roof that does not qualify as either (A) or (B) above.

6. NSR

not sure relevant to roof

A. WOOD FRAME: 14% (Gable ends) B. MASONRY: 86% C. OTHER: %

can you break it down in lamens terms?

That looks like a spec sheet taken out of a code book or city ordinance. Did you get that when you bought it?

no i copied and pasted the important parts from the wind mitigation report that was done for the home inspection before i bought it...i actually have the whole report but i only copied the relevant parts i thought were most important..its from the actual report pdf file..yes to answer your question..i got it when i bought home inspection

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heres what i got on my roof in south florida where hurricanes come..yikes...need an expert opinion..bought house 3 years ago

Im looking at the wind mitigation report. here it goes

1. Asphalt /fiberglass shingle---permit 02/2014

2. Built up.

5. C. Other Roof Any roof that does not qualify as either (A) or (B) above.

6. NSR

not sure relevant to roof

A. WOOD FRAME: 14% (Gable ends) B. MASONRY: 86% C. OTHER: %

can you break it down in lamens terms?

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Originally posted by @Rachel N.:

@Account Closed, I believe that "seasoning" the property means waiting for some months so that new one you've just bought with a HELOC will appreciate in value, then if you get a traditional mortgage on it (that would be a stand alone loan), you could use that to pay off your HELOC...

what if your heloc doesnt cover the full pp of investment property...say your heloc is only 125k but you want to buy proprty worhth 250k,,,how do you handle something like this?

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Originally posted by @Luke Texidor:

I meant to say loan not Lonnie. Haha

got it thanks...lol.can you use heloc as a down payment for a investment property? ...and then get a stand alone loan for the whole amount of the purchase property?..not sure if that makes sense..

example..pp of investment property is 150k.... get heloc for 125k(example)..use 20k of heloc for down paymentto fund purchase....then get a stand alone for 150K?

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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

Can you explain what "season the property" means?? and whats a stand alone loan? sorry for the newbie questions

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good for you..wish someone in my area would do this id totally be down for this

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Houston, Texas

All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 56 times.

Post: Making an offer with no hard financing plans

Post: Tenant wants to pay full years rent

Post: How do people aquire multiple units in such a short period?

Post: What am I doing wrong in Harrisburg?

Post: Anyone have any roofing questions ?

Post: Anyone have any roofing questions ?

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