All Forum Posts by: Brian Ketner

Use the HELOC soley and pay it back down with the rent or use HELOC to purchase and then cash out refi?

So the lender I would be working with, said I would be able to refi and get up .95 on the LTV. I know I want to leave equity in the property, but if I didnt buy a deal or overshot the rehab, I feel I could get the HELOC back out.

I have the means from 8-5 job, to pay another mortgage if I needed to and cover the remaining amount of the HELOC if necessary.

So what would you do? 

So right now I have about 65K through a HELOC I am looking to get into my 1st property. So reading on the BRRRR method and talking to some local investors, the opinions are the opposite end of the spectrum....

BRRRR would say, buy a property with the HELOC, rehab, rent and refi it with a 30 yr loan, then repeat.

Talking to two local investors - they strongly advise against leveraging that much on a property because of the risk and stress of having to keep a property rented and making sure the mortgage is covered if its not rented. 

Can someone explain why leveraging all your properties is a good idea? or a bad idea?

Also, talking with a lender they stated if i paid "Cash" out of the HELOC, make sure the property is in my personal name. Then once I refied I could then put the property in my corp. Is this correct? They said if I bought it with cash 1st, they would not be able to refi it since it was in a LLC or S corp.

Can someone explain to me why the BRRRR strategy is less risky vs using a bigger down payment for a property? Or is it risk vs reward, because you can get multiple properties faster than saving alot of money for multiple properties. If you leverage every property to the 75% max and have no liquid equity, what do you do in a down turn? Ultimately if you leverage 10 properties with all 30 year mortgages, most people wouldnt be able to float those 10 payments.