All Forum Posts by: Cory Hill

@Michael Bartley I'm not sure how I could do both with jus $80k. In my local market, sale prices are very high so I would use the majority of the 80k as a down payment on the new primary home. If I kept my current home and bought rentals in a cheaper market, I would ideally be looking for a duplex or triplex which would offer cash flow but not as much appreciation. 

@Bill S. You offer an interesting perspective and I completely see where your coming from. Cash flow (to some extent) will be a part of any deal for me or I won't do it, but long term appreciation is how you scale and build wealth. Looking at it in that way, I know my local market much better and I know growth potential here vs the out of state market which is known to be a "safe" linear market. Thanks for your advice on this, I really appreciate it!

I currently have a HELOC on my primary home for $80k. I have been wanting to reinvest this into buy and hold real estate for the long term. Where I live in Northern Colorado, $80k does not go very far. I have been looking at other markets to buy a couple smaller homes as rentals using my HELOC and the BRRRR method. OR I have the option to buy a larger home for myself (which I will also be house hacking) and then turn my current home into a rental which will perform with a $600 cash flow monthly.

I have been pre-approved for $400k for a new primary home. 

My interest rate on my HELOC is 5.5% for five years and prime after that.

My goal is to build a portfolio of rental properties to hold long term. Given my current position, which option would be the better move towards that goal at this time?

Thanks for your feedback!

@Marisa Rowe what measures are you taking to vet the neighborhoods in which you are buying in Detroit?

I have a wholesale opportunity where I have negotiated the sale price down much lower than market value due to a motivated seller who just wants to get rid of the property. Initially, I was planning on using a HELOC with the equity in my personal home to purchase this property, do a few minor updates like new carpet and paint and turn around and sell it within 30 days for 10k over what I paid. I already have interested buyers. That said, I am now running into issues with getting the HELOC due to my DTI (Debt to income) ratio. I am now forced in a position to wholesale this deal in order to still make the profit while not being able to utilize any of my own money. This would be my first wholesale transaction and I understand the concept an the process, but how do I structure this so that the seller is happy? Can anyone provide a wholesale contract that I could use. Also if you have suggestions on other lending sources that might be more liberal on my DTI that would be helpful also. I have about 85k in equity. Located in Colorado.

Thank you in advance for any feedback and suggestions. Hoping to find a way to not miss out on this deal I've worked hard to put together.