All Forum Posts by: Brian Lagman

Quote from @Huy Nguyen:

@Brian Lagman can you share what bank did you apply HELOC from your investment property? I want to apply it. Tks.

 It was from a local bank in SF named SF Fire credit union. You must be a resident

Quote from @Theresa Harris:

What is the interest rate on your HELOC and what would be the rate on your private loan? Assuming none of the debt affects your ability to borrow more money, I wouldn't pay off the no interest credit card until you need to start worrying about interest. After that, the question is what has the highest interest rate and is that rate higher than the return you'd get investing that money elsewhere or not?

Good question. My HELOC variable rate is 9.5%. Since the private money comes from a family member, no rates are associated. It's pretty much a gift. I can probably get a similar deal to my previous investment at a 11% CoC return

Quote from @Oliver Bernardo:

Hey @Brian Lagman If you can pay off your 0% APR credit card before the period ends, it's beneficial. Pay your HELOC steadily, but no rush if there are good investments. If a new property offers a return higher than your debt interest, consider investing.

 That's what I was leaning towards. It made a little dent in my credit report. I appreciate the feedback

Hello everyone! I pulled out a HELOC amount of $55k from one of my investment properties to fund the downpayment for another investment BRRR property. I opened up a 0% apr credit card until November 2024 to fund my upgrades and furnishing of about $18k. My new investment property (MTR) generates about $900 cash flow. After the seasoning period ends, I can potentially get $20k (conservative) from my cash-out refi. I have a total debt of $73K with a $20k potential upside with my cash-out refi. 

I live in Northern California with a high-income W2 salary, and I can pay down roughly $1k a month towards my debt.

I have access to about $60k of funds (401k loan and private money loan), and I would like to invest it into another property before the 2023 year ends. 

Im in a bit of a dilemma should I pay my debt down first, or should I continue reinvesting? I worry that once the interest rate drops, the market will go up, and completion will be harder. 

I appreciate any help. Thank you so much. 

Quote from @Andrew Cargal:

Trevor, I read the bylaws for STRs in Waco. I don’t live in Waco. It says that if if you don’t live in the county, you have to have someone local managing it. 

Can that be anyone? Does it have to be a management company? Or could it be a friend we ask to be the primary contact?

 Im also curious about this too. Have you gotten an answer?

Welcome! I had a similar post when I started investing. I just closed on my Temple property last month. Bell County is growing. There's a lot of upside in the future and I don't see any slowdown. Killeen and Temple and two different markets so its best to choose an area that suites what you're looking for.

How is your MTR property doing? How long did it take until found some guests? Would love to learn your vacancy rate and your experience working with future guests on furniture finder

Quote from @Greg R.:

You said that you're a direct flight away, but have you been to these areas yet? Sounds like you have the means to travel and check them out. You can certainly purchase sight unseen, but I wouldn't recommend it, especially being new to RE investing. 

If you haven't been out, take a few days off work and come explore the areas. Doing internet research is not equal to visiting a place in person. 

 I checked all the direct one-way airlines from my area. I definitely agree ill make sure to visit the area I plan to invest

@Justin Robert @Pete Harper @Chris Allen I appreciate all your feedback, this is all super helpful. I do agree that I think it would be a wise decision to make a visit to all three locations to determine. Temple has been getting more of my attention due to more job opportunities with Meta's new data center in the future. I'm playing the long game and want to get in as soon as I can.

Hello BP community,

I'm a new real estate investor living in the Bay Area. I'm an engineer and fortunate to have 2 properties in an expensive area but my rental property is not cash flowing. I've done extensive research and narrowed down my market in northern Austin. It's a direct flight away and there are properties less than $150k within my budget. One day I would like to retire early and help my family become financially free. I would like to learn what areas to invest in my first out-of-state property in Cooper Cove, Killeen, or Temple. What areas should I stay away from and what areas should invest in? I'm trying to mitigate future head and pick people's minds to help me gain a growing real estate portfolio. Happy to connect with others within the Texas area.