All Forum Posts by: Anthony Le

HELOC it and buy a condo. Costs you nothing (or close to nothing) to get a HELOC and it is there when you need it. All you are doing is essentially lowering your cash out of pocket downpayment because the other part comes from HELOC. You could do less than a 20% downpayment without the HELOC but it'll be much more expensive with PMI, etc.

Do the above only if you can afford it. If you can afford to live in a $500k condo buy at or below that but don't go over just because the HELOC makes it feel like you can go higher

Thanks Sergey, I should be able to afford the 500k condo. Not sure about the 20% down, that'll be a little tough. But, I'm assuming as long as the market turns around in 3-4 years I should be good.

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Quote from @Lorenzo Prieto:

Hey Anthony welcome to BP! If I understand right you are thinking of doing a HELOC on your rental property. Lenders who do HELOC's on rental properties are a little harder to find but don't stop searching, I know there are investment friendly lenders who do HELOC's on rentals.- I just don't know any personally. Overall, I think it's a good idea. I've helped a lot of people do this exact same thing only difference is they do a HELOC on their primary residence.

Once you find a lender who will lend on your rental property I'd recommend getting a good understanding of how their HELOC products work. - Variable interest rate, what's the cap rate, how much can it increase and how often, pre-payment penalties, etc etc.

Good luck and feel free to reach out with any questions.

Hey Lorenzo, thanks so much for your advice. If you know any banks that will do a HELOC on an investment property, please let me know. Based on the positive responses so far, I think I'll do that and look to capitalize on this correction.

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Hi All, new to real estate and could use some advice. Would you HELOC in this situation?

I have a rental property in Las Vegas that is currently valued at $550K, I have about $220k in equity on the house and it's currently generating a decent cashflow of $800 a month - 3.25% Interest rate.

I live in California though and am renting every year for about $3000 a month. If prices drop in my area, I'd love to buy but am short on cash. I'm wondering if it would be smart to take a 40k-50K HELOC in order to purchase a condo. The plan will be to live in this condo 3-4 years, rent it out or sell after. I can use my cash flow of my first rental property to pay the monthly HELOC payments.

Thoughts on if this would be a bad idea given the variability in interest rate of HELOC and the length of my loan.

Appreciate you all!

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@Melissa Nash thanks for the insight Melissa. I've been on the fence about investing in an STR in Palm Springs, homes values just seem to high right now.

Wonder if you have any thoughts on that? Current valuations and the profitability of STR's

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All Forum Posts by: Anthony Le

Anthony Le has started 1 posts and replied 4 times.

Post: To Heloc or Not to Heloc

Post: To Heloc or Not to Heloc

Post: To Heloc or Not to Heloc

Post: Palm Springs short term rentals