All Forum Posts by: Brandon Tedford

HELOC is 3.5%

$48,000 HELOC taken out of rental property #1. Bought rental property #2 with HELOC, spent $26k of own money for remodel, property is cash flowing ($1100 rent-$142 HELOC interest only pmt-$60 insurance=$898. Estimated tax at $1300/year).

House #2 ARV is estimated to be $130,000. Bank will loan 75 percent of appraisal at 4.875% rate= $97,500.

Should I...

A) Take the refi money, pay off $48,000 HELOC, pay myself back (a little bit), use remaining money as down payment on next property?

B) Take refi money, don't pay off HELOC, use that additional $48k to buy multi family/SFH/duplex or multiple properties?

C) Wait until March 2021 (1 year after purchasing #2), continue collecting rent, stockpiling money for emergencies, and do another HELOC on the equity in #2?

Or YOUR option D??

Thanks everyone.  I looked at many of the ones you all listed.  Zillow doesn't have a means to manage easily.  Cozy was bought out by Apartments.com.  They have a good program and it's free except for charging applicants for background check, application, credit check.  I think it was $24.99.  I decided to use Apartments even though I don't like the name.  Thanks!

What is the preferred method to collect rent?  What program do you use? Is there an all in one app/program that tracks payments, expenses, and maintenance that makes it easier that is cheap or free?  Thanks.  

Thanks for the advice everyone! @whitney hutten what do you mean lock in long term debt? How exactly? 

I did not post any finder's fee. It's not listed on the MLS. So, what is the normal course of action if I sell the house and the buyer has an agent?

Sounds good, but with that 96k I'll have to pay off the $45,000 HELOC leaving me with 51k, right? Then the tenant pays the mortgage on the 96k loan, correct?

I bought a house in Mississippi for $45,000 (HELOC from equity in another rental I own). It is a 2340 sq ft house. I completely remodeled the interior and did some outside work totaling $24,000 (my own money). I currently have the house listed FSBO for $145,000. I may get between $128,000-$138,000 for it because it's not in the best area. Should I BRRRR it instead if I can get a cash-out refinance?? If so, why should I BRRRR and refinance after I get a renter in there paying around $1100/month since I'm only paying $142/month HELOC payment and $118/month fire insurance (unoccupied currently)? End of year taxes should not be very much.

I know if I sell it, I will have to pay short term capital gains tax (approx $12,000) since I bought it in March 2020. 

@William Simmons really just luck, I guess.  They had it listed for $75,000 and I set up a showing.  During my walk through, I took notes on things that I would "have" to update to get it rental-ready.  I shared the notes with my realtor who I made sure passed the info along to the seller's agent.  The inexperienced realtor said that the owner inherited the property and had no intent of fixing it up and that she just wanted to sell it so that she could move back to Texas.  With all of this info, plus the repairs, I saw my opportunity to offer as low as I did.  

Hey Riley. No, I haven't worked with any in Columbus yet.