All Forum Posts by: Ana Marie B.

Hi BP!  My husband and I are on the hunt for our 2nd investment property.  We just found a listing for a $460k 4-plex in a C- neighborhood.  It is near a light rail, which is what's peaking our interest.  However, the businesses, cars, etc. around look drab and sad.  

Wondering what your thoughts are about investing in relatively "sketchy" areas.  Our other option would be to simply purchase a turn-key single family home in A - B- neighborhoods.  Any thoughts?   Thanks in advance!

Nicely done!  Congrats.  My husband and I are also interested in purchasing a duplex for our next property so this post was quite relevant.  

@Edward B. - Thank you for the tips! I actually wasn't familiar with the acronym "BRRRR" but after a quick google search, I found a great thread on BP detailing this strategy. Will definitely be on the look-out for a good BRRRR deal out-of-state.

As for the variable HELOC rates, I like your idea of playing things safe and projecting a higher interest rate of 5% just in case. Thanks again.

Just by way of an update - My hubby and I recently took out a HELOC through our local credit union with a low 3% interest rate. It was a pretty quick and painless process (as opposed to Refi's). Hoping that rate stays low for some time ;)

Now time to hunt for our 2nd investment property!  Thanks again all for the great tips on this thread.

@Jeff Pollack - Thanks so much!! We have already spoken with/ started the process with a seemingly knowledgeable rep at our local WFB branch, but if things don't go smoothly with him, I'll definitely PM you re. your contact at Redwood City. Really appreciate your help! :)

Not sure what the condo laws are like in Houston, but some cities and/or HOA prohibit condo units from being used as short term rentals (i.e. AirBnB). Might be worth researching this and/or asking your agent before making commitments.

@Account Closed - Thanks for the word of caution! We will tread carefully :) WFB actually has a promotional HELOC rate through the end of the month for 2.24% which is lower than our credit union at the moment.

As for out of state investments being a bad idea I think it's all relative (even for CA and NY residents).  Think it all depends on location.

@Edward B. - Thanks for shedding some light into the financing piece!  Makes sense!  

@Yinan Q. - Thanks for your feedback!  I definitely understand the benefits to using a home equity loan (fixed rate being the main one), esp. since we will be using this as down payment.  In our case, however, we do plan on using this loan for the short term.  We don't want to carry this debt for very long.  

@Daria B. - Hi Daria! Not sure if this makes sense at all, but we'd go through WFB for the HELOC, but not the rental property. We'd be purchasing the property out of state and will likely go through a mortgage broker. Guess that leads to our next question, how does using a HELOC impact financing? Last property we purchased, we used our actual savings so that was a different situation.