All Forum Posts by: Art Shalomov

Hi Yael, I can connect you with an agent that meets all your requirements. Sending you a msg.

While the 4% mortgage is great, your 1M in dead equity isn't giving you a great return. If you come across a better opportunity here in AZ where if you can take your 1M and turn it in to 1.2-1.3M ( maybe a value add deal) sell the house, take the equity and use it to get a bigger return. Otherwise, get a HELOC to access the equity to buy a home in AZ. At that point you can keep the property in Seattle or Sell it down the road if ever needed. Just make sure to run the numbers with the HELOC payment and the rent, so that you are not underwater every month.

Quote from @Gladys Melendez:

Great thank you, for the information.

I would like to turn into a long term rental.

I'm also wondering what is the best way to go about the purchase would it be smarter to use a HELOC for the purchase or as a second home or investment purchase.

Hey, Gladys. I see your response regarding HELOC or not. This is a good question.

There are many factors to determine what makes sense for your particular situation. I wish there was a simple answer. With just a little more information I could give you some clear guidance. Do you have time for a call this week so we can sort through your options?

Personally, I've done both. I've bought properties with HELOCs and regular financing. It just depends on the circumstances, which we can easily explore.

I look forward to talking with you.

Art

@Melanie Johnston thank you for your endorsement! 
Hi @Gladys Melendez! I would be happy to chat and point you in the right direction.  

Hi @Avery Eaton! I am a local AZ lender and an investor with a large portfolio. I would be happy to help and point you in the right direction with financing and setting up your portfolio.  

I personally like and invest in the north Phx area. When looking at LTRs the lower the price point, the better the numbers will look. Areas like Scottsdale and central Phx have been very popular to invest in but have gotten expensive now.  It’s hard to get anything to cash flow ant the moment especially if you are putting minimum down. North Phoenix, in my opinion is still decently priced and the rental demand is strong. Get a solid, investor friendly agent in the area (I can refer if needed) and look for homes under 500k, 4 bedrooms is a big plus. Im happy to connect if you have more questions. 

@Steven Thomas 

Hey Steve! Getting into the real estate business and building a solid financial future is exciting. As someone who started in my twenties and successfully built a portfolio, I'm more than happy to share my strategies that worked for me. Here's some advice I would give to my 25-year-old self.

Firstly, Arizona is one of the best states to own real estate in. It's a growing state with landlord-friendly tenant laws, making it an ideal location for investment. It's important to note that building solid cash flow takes time, especially in the current market with higher interest rates. In fact, most of the properties you'll come across, especially when buying with a low down payment, won't generate positive cash flow initially. Also, you will need some money to work with. Its tough to do it all with out some cash reserves. Considering your age, I would suggest focusing on buying properties with value add opportunity and growing your equity position first. By continually rolling over the equity from one property to another, you'll see your equity grow with each transaction. This will provide you with additional funds to work with, making your journey much easier. To begin, I recommend purchasing a small, entry-level single family home with value add opportunity. Utilize low down payment programs to acquire the property. Over time, remodel it, refinance, and either rent it for cash flow OR sell it (after 2 years) and reinvest the equity, depending on market rental rates. I would personally recommend selling your first one, so you can get some cash on hand to work with. The second property will be much easier to work with once you have some money. Do this a few times, you will start to acquire more cash and it will be much easier for you to buy properties so you can build your cashflow.

One last thing but very important is for you to build a circle with the right people around you. Build a relationship with a solid realtor who understands the investing game and work with a loan officer, that understands what you are trying to do so they can plan your next move in accordance with the lending guidelines. This is how I built my portfolio. I would be happy to chat more and share my personal experience.

Quote from @Leslie Beia:

So helpful, thank you! Is rate and term only for commercial refi's, or conventional as well? The option had come up with my last commercial refi, but now I'm looking at trying to BRRRR my way to a primary home with some convoluted combination of hard money and conventional mortgages. I'm still figuring out the strategy, but it seems like being able to refi quickly out of hard money would be a great option for a lighter rehab. The trick with the 2nd mortgage is great and certainly makes the numbers work far better! Thanks.

 This is only for conventional/ residential financing. Can be done on primary or investment home. 

@Pedro Huichapa 

Wow, with 2 million dollars in cash, you've got some exciting options ahead of you. It's all about your long-term strategy and what you're looking to achieve.

Given my 15 years of experience living and investing in the Phoenix market, I can tell you that single-family properties are a fantastic choice. The multifamily options here aren't as appealing or affordable, so single-family homes make a lot of sense. They're easier to buy, sell, and rent, plus they tend to attract great tenants.

I'd love to have a chat with you and share more of my insights and experiences.

That “down payment” needs to be. Recorded as a lien along with  NOTE at the time of purchase.