All Forum Posts by: Bill Hughes

got it! That clarification was right on the money. Thank you so much Brittany! I'm not so concerned about getting the actual market value out of the property right now as I am just getting my HELOC freed up for more potential investments.
Now if I could just find a bit better rate...  ;-) 

 Yes, I am definitely planning to pull the cash out.  The bank didn't mention a holding time but I have heard that mentioned in forums here before. 
I do plan to put a roof on the building.  I wonder if that would qualify for rehab? 
My hope was actually that I could get a slightly lower rate than my HELOC rate, but I guess that was wishful thinking.
I wonder if going the commercial route with balloon payment is the best option.  Assuming I could refi before the balloon payment is due in a few years (and hopefully at a lower rate). 

Hi,

My offer was just accepted on a triplex that I'm purchasing below market at $400k. I have cash to buy through a mixture of personal savings and the use of a HELOC I have out on 3 other rental properties I own. The purcahse won't be a problem, but I can't keep the HELOC funds tied up in this so, I would like to refinance it preferably with a 30yr loan when the purchase is complete. The local bank said they could offer a investment property loan at 8.65% (that's after paying points). They also said they could offer a commercial loan probably at a lower rate but shorter term with a balloon payment.
I've flipped and have been landlording for 5+ years now, but to date have never really looked for a loan on an investment property.  So, any ideas/guidance etc would be appreciated.  

one (probably silly) question @Moshe H.  When you say "30 year financing" you are referring to a conventional mortgage?  (ie.  subject to closing costs, points etc?)

@Moshe H. That's a huge help actually and so simple. For some reason, I hadn't considered keeping the HELOC alive but that makes total sense and I also hadn't considered speaking with a broker. i'll go back to the bank first and make it clear that this is what I'd like to do. I may need to adjust the HELOC limit as it's set conservatively at $30k at the moment but otherwise this seems like it would get me exactly where I want to be.

Hi all, I am just getting started in REI. I have a reno just completed and tenants ready to move in. I had planned to BRRR his one. I also just purchased a second home for reno that might be more qualified for a flip. To finance the first reno and purchase the second, I used a combo of personal savings, no interest credit cards and a HELOC against my primary residence with a plan to consolidate through a refi of reno #1 once I had tenants in. I spoke to the bank yesterday and they are eager to help me with lending, but they are strongly suggesting that I continue with another HELOC (no closing costs and 2.99 rate with option to rate lock blocks of debt) against my primary residence since I have more than enough equity there. They're claiming that this would be easier and provide a better rate than a commercial loan (which would be required to refi reno #1 because it's not my primary residence). Something doesn't feel quite right to me about going deep into debt on my primary residence but, looking for some sage advice.

Options:
- Go with another HELOC on primary residence to fund second reno and consolidate debt
- push for a commercial loan on 1st reno

- Other?

Thanks in advance!

(just noticed the messed up subject line but can't edit!)

I'm looking to purchase a home from a bank here and once we got to acceptable terms (before signing a purchase agreement) I received notice from them that they wanted to share results of a property survey that shows a neighbor with "encroachment".  Basically, the survey shows that the neighbor's pavement is on the property that I'm interested in.  The houses are only about 10 feet apart and his driveway pavement touches the foundation of the house I'm interested in.  The pavement is about 3ft onto the property.  I've spoken to this neighbor during the 2 times i viewed the home and he was quite open about it.  He said his family were long time friends of the previous ownders and they had a friendly agreement to allow them to put the pavement there.  Personally, I don't see it as an issue.  It actually means I don't have to cut grass or maintain shrubs there but wondering if I should be more concerned about it since a previous prospective buyer walked away because of it.  I won't know what I'm going to do with the house (rent or flip) until I can get someone in to look at the condition of the plaster (if it can be reparied, I'll likely flip, if not, it would make a great rental).  Looking for any helpful guidance.

Hi Jason/Justin,

You might try Justin, he seems quite knowledgeable in the local market and attorney matters.  He's been helpful in answering some questions for me.  You can search BP for people "Chris K." and see the one from Wilkes-Barre.

good luck.