All Forum Posts by: Andrew Rader

The answer to the last part of your question is yes. You can use the HELOC to pay cash for a property assuming you have enough. Then you could finance it and pay the HELOC back. But, you will still need to be at 80% LTV. So if you go over that, you may not be able to pay back the full amount.

As for the first part of the question, it can make perfect sense. I used a HELOC from my first investment property to make the down payment on two additional units. The extra $700 in cash flow per month more than makes that less than $100 interest only payment on the HELOC.

@Andrew Rader

Hey Andrew, I live on the OBX and invest a great deal here. As mentioned above, the prices have increased in the past few years much like many many areas however there are still great opportunities if you know where to look and see the potential where others may be glossing over it. Inventory is definitely very low therefore it pays huge to define what your buy box is and be prepared to move fast when you see a opportunity. In these competitive markets one doesn’t find great deals one must create great deals! I do not believe that we’re over saturated, in fact our exposure over the past few years has been quite remarkable and we are seeing a great deal of guests that have never been here before added to the already large guest base that has been vacationing here for decades. I believe we are in a continuing growth phase and that we should see strong rental numbers going forward.

If you have any questions please don’t hesitate to reach out.

Happy investing ! Cheers!!

In any beach market, your gross vary greatly on how close you are to oceanfront. I've been much happier and made more $$ through the years with my FL rentals because OBX is a only seasonal market. The money weeks are Memorial Day to Labor Day with a few shoulder weeks. The vast majority sit empty fall to spring. Since COVID prices have soared and inventory is very tight. In recent chats with realtor contacts a very general rule is a good rental will gross 10% of its price. An "average" 5 BR with pool and hot tub with best beach access will gross $100k. With COVID some rental homes have been turned into second homes and are out of the market. If you check rental company calendars, bookings are very strong for this year. Usually you can't see the rates once booked but if they list the range on the house it shows you the rates for prime (midJune to midAug) vs off season weeks. So you can develop your own idea. If you want OBX because you love it and will get personal enjoyment from it, then buy with the idea that it helps pay the mortgage. For a pure investment, I would head much further south. Best wishes.