All Forum Posts by: Brian Prom

Bryan Neal Ha! I've always heard the opposite. Thanks for your advice. Paying off mortgages has been my plan for the past 3 years, just growing that initial down payment has been difficult. But in a better position to get it done now.

@Bryan N. 

It's like you read my playbook, exactly what I want to happen. I just want to get started, been sitting on the sidelines for too long. 

I'll be ready in a year or less.

@Joe Villeneuve 

Could you send me info on your REIC? I work in AA, so that works out great.

@Joe Villeneuve

Could you send me info on your REIC? I work in AA, so that works out great.

I guess my long term plan is relevant in this discussion. I want the equity, I want to pay my homes off, I've been a little nervous of using too much leverage especially when it comes from my PH.

My current home is my first home, perfect rental, will cashflow $300 per month, (one of those rare deals in my area. Been thinking of using FHA (since I just refid out of an FHA) on my next home, which I would like to eventually rent out. I like this conservative approach, but like I said, I'm new.......I want to make my first deal a winner.

Hey everyone.

I'm a new investor, who is currently in the paralysis by analysis stage.

I'm eager to get started, just having a hard time waiting patiently while I painstakingly build my lump sum of cash for down payment.

My question is, should I use my primary home's equity to get started? A little background.

Just refi'd my primary home, assessment came back at 156K. I owe 81K. If I did get a HELOC I would more than likely only take up to 25K to use as a down payment. Here is the problem I am facing.

I found a good deal, needs some work, but I can do everything so no big deal. I believe I would be getting the home close to %20 below market value after rennovations.

After mortgage and expenses (yes I figured in PM, Vacancies, maintenance, etc) the home will cashflow $170.00 per month.

If I take equity from my PH my payments on 25K would be ~$500.00 per month. (5 yr payoff)

That leaves me with $330.00 per month of extra payments to pay the monthly payment on the HELOC. I don't want to get myself in trouble with monthly interest only, or a super long payoff time.

The math doesn't lie here, I know what the answer will be, I need a better deal, or more cashflow, but properties that cashflow more than $200 a month simply don't exist (or at least come about often) in my selected area.

Is using a HELOC for buy and hold strategy not a good idea? Or am I totally missing something?

Thanks Mehran!

I'll be sure to set those goals and criteria. I've started working a ton if overtime and saving every penny to get started. I know my target area, home prices rent comps etc, as soon as capital and emergency fund is available I'm ready pending the right deal.

Paying for my wife's college education has delayed my investing timeline......but I cannot wait to bring you guys my first potential deal> I place great value on the opinions of all BP members!

Hey everyone,

My name is Brian. I am 27 years old, happily married with a 5 year old daughter.

Bought my first house 5 years ago with the intent to eventually use it as my first rental home. As I am getting closer to being able to jump in, I wanted to start creating connections and learning my market through other investors in the area.

I have big dreams, big ideas.....i've been studying for the past 5 years every avenue of RE investing....leaning towards the buy and hold strategy with small multi families and single family homes. I've listened to every BP podcast and read many of the blog posts, I believe that I am in great hands here at BP, and have learned so much from Josh & Brandon as well as the knowledgeable investors that frequent this site.

I look forward to engaging more in the BP community, just wanted to introduce myself, Thanks everyone!