All Forum Posts by: Beth Wheeler

@Marcus Hill - I look at the HELOC as a checking account. When I refinance, I am pulling all the money I can out of the HELOC that I paid in to reimburse for any money put out to purchase and renovate the home. All rent that comes in from my tenant goes towards paying off the HELOC. When I need to pay my property taxes, home owners, any maint. issues, etc., I use the funds from the HELOC to pay for them. If my payment on my HELOC is $600 a month and I am paying the total rent of $1,100 a month towards the HELOC, I am paying my principle down faster. The faster you pay down the principle the faster you pay it all off. The advantage of the HELOC is that as I pay down the principle, I am building more liquidity in the HELOC in case something else comes up or I need the money for something. The HELOC can have a higher interest rate than a fixed rate conventional mortgage, but as you pay down the mortgage, you can not access the equity without refinancing or getting a HELOC.

The home I just purchased I got for $79K and it appraised for $95K before any renovations are made to increase ARV. It had been on the market for half a year needed some structural repairs, new septic tank, crawl space issues, and was in need of cosmetic updating. I knew the costs of the major repairs before putting in an offer, so I was able to drive the price down as the owner just wanted to move on from the property. I did find some unexpected repairs that are going to cost me $$ to fix, but that is always the case. I did budget for these, but it still hurts. This is my 4th investment property and I am learning a lot as I took on a bigger renovation with this one than I had with any others.

@Marcus Hill I just bought my 4th rental property by using my HELOC for the down payment and rehab costs. My credit score is taking a slight hit, but nothing drastic. I mortgaged the property with a 15 year conventional mortgage. We will be finished the rehab in a couple of months and I already have a tenant lined up. This will be the first time I am doing a BRRR, so it is exciting and a little scary. I am at the point where I was starting to question how I want to handle getting my money back out. I can cash out refi, do a 1st position HELOC, or just do a HELOC for the equity I will have in the property. I like the idea of the first position HELOC. This way I have access to more equity as I pay the home down. I get hesitant about the rates being higher, but it seems like a smart way to pay the home off quickly and provide flexibility. Just wanted to give you another way to look at it.

@Lorraine Gomez I think there are some great opportunities in the Poconos because the homes are lower priced to start out. Make sure you understand septic systems and wells, because that is about all you are going to find up there. These items can be gigantic expenses when something goes wrong. I say when because it is inevitable that something will eventually go wrong. People who rent will flush things that the system can not handle. It does not matter how many times you explain or provide info or lists of what not to do. They will simply not understand unless they have these systems. The rental season is all 4 seasons, but you typically will really only get weekend rentals most of the winter months and weekly rentals during the summer. There are a lot of STR's in the Poconos, so you have to be strategic in where you invest.

@Sean McNealley, welcome to BP. I am a Realtor in PA and DE. I just attended a property management class where we discussed this topic. In DE and PA, emotional support animals must be accepted. You can require documentation from a doctor certifying that the animal is indeed required. You can not ask why they need an emotional support animal.

It was also pointed out that there are a lot of websites that will certify any animal as an emotional support animal for a fee. The property management company explained that they do not accept any certificates. They only accept letters from certified doctors and they call to verify that the letter is real.

@Alanna Schroeder my vacation rental is in the Pocono Mountains in PA.

@Jordan Oncay thank you for the reply.  I have sent you a message and look forward to hearing from you

Thank you very much.

Thank you.  I am doing research to see how auctions are done in Delaware.  I believe they do them at the courthouse.

I am going to try to contact the owners and see if I can get a line of communication with them.  I have never done my own title search before, so any advise on this? 

I am a new investor and I have been watching a house that is vacant and trying find who owns it and how to get a hold of them.  I went by last night and saw a notice posted by the State Superior Court with a notice of foreclosure action.  It lists the bank and the three owners of the property. I did a parcel search and it looks like the house is in the name of a living revocable trust.  I think there is a lot of potential for a possible fix and flip.  I have never dealt with any type of foreclosure before and I am not sure how to move forward to inquire about this property and possibly snatch it up.  I am also not sure what the drawbacks or roadblocks would be since it is now in foreclosure process.  Help Please!!

Thanks

Beth

I am looking to build my team and I need some referrals for good general contractors in the Northern Wilmington and Southeast PA area. I have done a couple of SFR already, but I am looking for my first fix and flip and want to have a team in place. Any recommendations?

Thanks

Beth